Senao Networks, Inc. Corporate Social Responsibility Report 2017 Senao Networks Inc. Corporate Social Responsibility Report 2017 Contents
Reporting Principles ...... 2 A word from the Chairman...... 4
Development of eco-friendly products Company Profile Promotion of green sustainable value chain Initiation and Growth...... 6 Management Philosophies ...... 7 Pursuit for Customer Satisfaction – Customer Corporate Social Responsibility Policy...... 8 Relation Management ...... 38 Milestones and Awards...... 9 Development of Green Products ...... 40 Product Overview...... 10 Examples of Green Product Innovation...... 42 Financial Performance...... 12 SNI received the honor of Best of Show for Global Deployment...... 14 CEDIA 2017...... 43 Supplier CSR Promotion ...... 44 Promotion of Electronic Industry Citizenship Integrity management and sustainable Coalition (EICC)...... 46 Green and Local Purchasing...... 46 management - safeguarding stakeholders' rights Corporate Governance...... 16 Create a LOHAS working environment Corporate Social Responsibility Committee ...... 21 to boost employees' feelings of Stakeholder Engagement...... 22 cohesion and well-being Risk Management...... 25 AEO outstanding enterprise and secured Overview of Employees around the World ...... 48 supply chain certification ...... 27 Human Rights Protection...... 52 Personal data protection management...... 28 Education, Training and Attracting Talents ...... 55 Respecting Intellectual Property Rights and Employee Communication and Care...... 57 Fair Trade ...... 28 Occupational Hazard Prevention...... 60
Ensuring legal compliance and Bringing employees together for reducing energy resource consumption community service, creating richer communities The “SNI Green Wireless Plan” for 2017~2020...... 30 Climate Change Management Integration into Local Communities and (Carbon Management) ...... 31 Participation in Charity Events...... 63 Water Resource Management...... 34 Environmental Risk Evaluation and Communication...... 35 Statistics of Environmental Protection Expenses and Investments for 2017 ...... 35 GRI G4 Index...... 67 Material and Energy Resource Flow Chart...... 36 External Assurance Statement ...... 72 Resource reduction and reuse ...... 36 Air pollution prevention...... 37 Reporting Principles
This is the first Corporate Social Responsibility Report published by Senao Networks, Inc. (SNI) for 2017. For this report, SNI has adopted version 4.0 (G4) of the sustainability reporting guidelines published by Global Reporting Initiative (GRI) on May 22 2013 and engaged the editing teams from various departments in 2018 Q1 to conduct two surveys on the extent of stakeholder concern and impact. Material considerations and boundaries were established in accordance with the outcome of the survey and presented to the President to determine the framework of this report. Through this report, SNI expects to report to its stakeholders in a more adequate and systematic manner on the Company’s performance in various areas, including economic, social, employee, EHS and so forth through disclosure to not only satisfy the needs of the general public but also facilitate convenient access to relevant information for different stakeholders.
Principles of Content Presentation SNI has called on relevant department supervisors and employees to assemble its Corporate Social Responsibility Committee to take charge of all aspects of corporate social responsibility promotion for the Company and the editing of this report. The committee is also responsible for the planning of relevant policies and objectives to be promoted in the future. Covered in this report are the corporate social responsibility policies that our department supervisors and employees have agreed upon and established to cover the five major developmental aspects of “economy, environment, employee, supply chain and society” in order to ensure wider and more comprehensive coverage of SNI’s management of its corporate social responsibilities.
Period covered by the Report January 1 2017 through December 31 2017. For the sake of complete disclosure, the report will also include information dating prior to December 2016 and specific events planned after January 2018. This Report will not only be a presentation of SNI’s past performance but also feature the Company’s plans and forecasts for the future. The aforementioned assumptions and judgments have been made based on the status quo as of the publishing of this report; actual activities and their outcomes may differ from our forecasts.
Report Drafting Guidelines and Information Reliability All contents relating to issues of sustainability, relevant strategies, objectives and measures disclosed in this “2017 Senao Networks, Inc. Corporate Social Responsibility Report” are compliant with the following: Global Reporting Initiative Sustainability Reporting Guidelines Version 4.0 (GRI G4) Core; “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies”; AA 1000 Assurance Principle Standard (AA 1000APS) To enhance the transparency and reliability of the information provided, this report has been verified by SGS Taiwan Ltd. to confirm that it complies with the Core Option of GRI G4 and the first category and moderate assurance level of AA1000AS (2008).
Report Boundary and Scope The report boundary of “2017 Senao Networks, Inc. Corporate Social Responsibility Report” within the organization covers SNI’s relevant performance in corporate social responsibilities. Beyond the report boundary of this publication, contents will cover local communities, suppliers and customers as our stakeholders. The scope of the report will be the overview of all material issues that have been identified. All associated businesses of SNI are distribution locations and due to their limited scale of operation, they contribute relatively minor impact on SNI’s overall operation. Apart from including them in our financial data, their performance in corporate social responsibility has been excluded from the scope of SNI’s 2017 Corporate Social Responsibility Report. SNI invested TWD 74.25 million in cash in emplus Technologies Inc. on November 30 2016 and increased its ownership of the Company’s stock from 15.33% to 51.86%. In 2017, the two companies were involved in a merger and are currently in the process of adjustments. emplus Technologies’ corporate social responsibility performance has also been excluded from SNI’s 2017 Corporate Social Responsibility Report. As SNI’s lease for its Neihu and Zhubei R&D Center expired, the Company has therefore relocated facilities to a newly rented office in Nangang and consolidated both into Nangang R&D Center.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Hwa Ya Plant No.1 Hwa Ya Plant No.2 Senao Networks, Inc. Neihu R&D Center (lease expired in April 2017) Zhubei R&D Center (lease expired in November 2017) Nangang R&D Center (inaugurated on May 2 2017)
EnGenius Technologies, Inc. (Los Angeles, USA) Senao International (Samoa) Ltd. (Samoa) EnGenius International (Samoa) Ltd.) (Samoa) SNI’s affiliated enterprises EnGenius Networks Singapore Pte. Ltd. (Singapore) EnGenius Networks Europe B.V. (Netherlands) EnGenius Networks, Inc. Emplus Technologies, Inc.
Reporting Cycle SNI will continue to publish its Corporate Social Responsibility Report on a yearly basis. Date of publication for current version: June 2018. Publication of next issue: scheduled for June 2019. (Previous version: N/A)
Inquiries Feel free to contact us at any time should you have suggestions or inquiries. Senao Networks, Inc. Charles Chuang, Business Management Department No. 500, Fuxing 3rd Road, Guishan District, Taoyuan City Tel: 03-3289289 ext.5819 Fax: 03-396-2222 E-mail [email protected] Company website: http://www.senao.com/Taiwan/
Reporting Principles P03 A word from the Chairman
Faced with the challenges of market competition and transformations in product technology, SNI has been investing in transforming itself to keep providing comprehensive solutions that are needed today and tomorrow. We launched a distributed cloud network management system in 2015 to drive brand revenue with our global EnGenius brand, set up a B2B e-commerce sales platform, made inroads into industrial PCs, antenna and power key components, added value to our dealer partnerships and raised our brand equity and its proportion in sales. In 2016, our new industrial PCs and power supply products were verified by customers and shipping promptly commenced to improve the Company’s overall performance and helped us to achieve our profit targets that had become a stable second foot for us to stand on. In 2017, SNI had also facilitated the replacement of old switch products with new multifunctional switches, IPCs, industrial class power supplies and OEM network communication products in mass production, all of which had contributed to the strength of revenue growth for the Company.
Maintaining our excellent economic performance, increasing profit levels and investment returns, and driving our overall and continuous operational optimization and improvement, we have achieved record turnover in 2017 and earnings per share of TWD 9.54, a slight decrease from 2016, but profits still approached one share. Since its establishment in 2006, our company has maintained its profitability every year. This is thanks to the efforts of all colleagues, deep collaboration along the supply chain, and the continued support of customers and other stakeholders. Looking at 2018, we plan to keep accelerating new product development and innovation, promote new niche products such as Multi G switches, industrial Internet of Things (IIoT) products and applications, and 802.11ax wireless network base stations (Access Points), and promote industrial computers and peripheral components such as antennas and UPSs for industrial applications, develop differentiated comprehensive solutions and flexible operations support services to consolidate our market leadership. We will also improve product quality and production efficiency, stabilize quality and delivery and enhance customer trust; continue building brand recognition; expand the market share of our own-brand products in the corporate and commercial customer segments; and expand our brand from retail products to end-to-end Internet-based solutions. In addition, in the IoT segment, our main focus is on the Internet of Vehicles, including image processing (vehicle cameras), temperature control and Industry 4.0 control, which can be used in vehicle network monitors, sensors and fleet management applications. SNI is developing towards high-end products, focusing on upgrades of core technologies and precise differentiation of demand. We are developing diversified application services to give our internet connectivity products new value to create and capture the next generation of business opportunities.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 At SNI we are expanding our production lines in response to the demand for production capacity. After looking for a new factory for a long time, we finally purchased a TWD 800 million piece of land in the Hua Ya Technology Park in Guishan near Taoyuan. The deed to the 33,000 sqm (350,000 sq ft) was transferred on January 5 2017. We expect to take the newly built plant into operation in 2021. One third of the surface will be used for R&D and office, while two thirds are dedicated to the manufacturing plant, which will have a production capacity double the size of our current plant to cater to increasing customer demand. Over the next three years we will continue the lease of our current plant.
While pursuing profitability, SNI does not neglect its sustainable management and promotes various projects such as: actively leveraging global patents, optimizing product quality standards, strengthening privacy protection, workplace safety, employee care, energy conservation, green products and giving back to the community. In these projects, we have achieved significant results such as: TTQS evaluation of our educational training system, ISO 9001 system evaluation in 2015, Commercial Integrator BEST Awards 2017, CEDIA 2017 Best Of Show Award, 2016 Outstanding Private Enterprise and Group Green Purchasing Unit by the Environmental Protection Agency, the 2016 Green Purchasing Excellence Enterprise by the Taoyuan City Government Environmental Protection Bureau, and the National Health Administration Healthcare Initiative Medal 2017. It is a great honor for SNI to receive those recognitions from society and government for its project outcomes. These projects have enhanced our staff’s capabilities and given us valuable experiences, which we pass on to our stakeholders through various platforms. We make full endeavors to fulfill our corporate social responsibility to contribute to sustainable ways of production and consumption.
To promote corporate social responsibility and advance toward sustainable development, SNI has had a Corporate Social Responsibility (CSR) Committee since July 2016. In April 2017, our Board of Directors adopted the Code of Conduct for the CSR of Senao Networks, Inc. Pursuant to this Code of Conduct and the GRI G4 Guidelines, the SNI CSR Committee actively promotes corporate social responsibility. The president is the chairman of the committee which has seven functional subcommittees that formulate CSR policies, management guidelines and action plans for such areas as the economy, environment, employees, supply chain and society. Internally we safeguard human rights, cultivate staff skills and enhance the wellbeing of our staff. Externally, we help build an environment of co-prosperity and joint growth to promote economic prosperity for all. We offer good labor conditions as does our supply chain, to produce products that bring convenience and comfort to people. In the process of SNI’s relevant operations, efforts have been made to ensure legal compliance and integrity management as the Company stays abreast with the latest international, social, community trends to incorporate various system operations and achieve transparent management to boost the Company’s image. This will enable SNI to become a LOHAS enterprise.
Chairman: Tommy Tsai
A word from the Chairman P05 Company
2015 December 30 2017 Profile Placed between 2013 the top 6~20% in Achieved record the 1st corporate turnover Became listed governance assessment
Senao Networks, Inc. (SNI) was initiated on October 1 2006 when Senao International Co., Ltd., separated its wireless telecommunication business group from the parent company. SNI received the registration and approval from MOEA research and development and for business operations on October 12 2006 and the Company specializes primarily in the manufacturing, marketing and distribution of wireless communication network products. On December 30 2013, SNI became listed on the GTSM (3558). Currently, SNI’s main lines of business encompass wireless network and wired network communications, with products covering enterprise wireless communication products, offerings in the entire WLAN series, broadband network communication, surveillance systems, industrial PCs, PC power supplies and antenna and so forth. In recent years, SNI has extended its coverage of network communication products to include smart home applications by integrating wireless gateway, IP camera and mobile APP solutions with the original brand of “EnGenius” to establish market presence. In 2015, SNI launched its distributed cloud network management systems that offer great convenience in management and high scalability. The solution satisfies the needs for small and medium enterprises and caters to the needs of large enterprises and as such, it has received overwhelming positive response from our customers and become our staple product that bears our original brand. Not only that, we have also established B2B distribution platform that enables us to communicate more directly with our channels while helping the Company to facilitate in-depth system integration and bolster relationship with our distributors so as to increase brand revenue and distribution ratio. SNI also forayed into the domain of key components for industrial PC, antenna and power switch by establishing our Industrial PC and Antenna Business Department on top of setting up our R&D Team for power products to engage in relevant studies. In 2016, our new industrial PC and power supply products were verified by customers and shipping promptly commenced to improve the Company’s overall performance and helped us to achieve our profit targets. In 2017, SNI successfully completed the development for the entire series of 802.11ac wave 2 products in its original brand and facilitated a substantial wave of replacement for 802.11n products in the market in order to maintain its leading edge while drawing customers from new market. We have also completed our WiFi Planner cloud tool to help channel customers plan their original brand wireless products with greater ease. The tool became an instant favorite for many of our channel customers upon its launch. On top of that, SNI has also facilitated the replacement of old switch products with new multifunctional switches, IPCs, industrial class power supplies and OEM network communication products in mass production, all of which have contributed to the strength of revenue growth for the Company.
Initiation and Growth
SNI has gradually established a solid presence in the market for upon project completion, SNI will offer End-to-End one-stop solutions enterprise network communication equipment in recent years and that make them easy to distribute and manage for channel customers the Company has been planning for its relevant transitions. Vertical while offering the best efficiency at the lowest costs. SNI will continue integration and horizontal diversification management have been to push other new niche products including Multi G switch, Industrial chosen as SNI’s two focal points for future developments. In terms of Internet of Tings (IIOT) and 802.11ax access point while promoting the vertical integration, the Company’s goal is to provide comprehensive development of new markets for industrial PCs and relevant peripherals solutions that cover smart home to corporate cloud networks. As for and parts such as antenna, industrial class power supplies. Last but horizontal diversification management, SNI will first focus its attention not least, the Company will optimize its production utilization rate and on industrial PCs. SNI’s greatest strengths lie in its communication adjust its product combinations to achieve optimal productivity in order core and power supply products and through diverse applications of to effectively maintain its momentum in revenue growth. We believe that industrial PCs, the Company stands a great chance to foray into the by continuing to invest in new product and technology development and domains for automated communication control, industry 4.0 and IoT. bolstering our production capabilities and collaboration with our supply For 2018, the Company will focus on its transition of product distribution chain, we will be able to deliver network communication products of to the promotion of total solutions in terms of its brand management. superior performance, more environmentally friendly and most cost- From the planning of network communication projects, execution and effective to cater to the needs of the market. These efforts shall bring installation for the projects to the remote maintenance and servicing greater economic value for all our stakeholders.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Management Philosophies
1.Customer to fully understand customers’ needs in order to deliver the fastest and Satisfaction: most accurate services. SNI aspires to know our customers and even our customers’ customers better than they know themselves. Customer 2.Team to establish positive communications and coordination in order to Satisfaction Service: achieve our common goals. The Company does not encourage individual heroism; we believe that it takes the combined strength of the entire team as a whole in order to create the best performance. Quality Innovation 3.Innovation: to stay up to date with the trends of the market and relevant technologies while continuing to enhance our core capabilities. In addition to technological innovation, we shall bring innovation to our mentalities in management by embracing an open mindset to accept new ideas. 4.Quality: to facilitate total participation in zero-defect management. Quality is not the sole responsibility of units involved in manufacturing and Team QA! Quality is something that stems from stringent design and management Service practices! We shall strive to foster total quality awareness for everyone at SNI.
Corporate Mission
SNI utilizes cloud computing in conjunction with ICT and AI to facilitate network security while creating splendid and humanistic smart lifestyle as we satisfy our customers’ needs, safeguard employees’ benefits and endeavor for optimal profit for shareholders.
CIS
The dove is a symbol of communication, and the icon of three overlaying doves represents our service philosophies of “morality, order and responsibility” and “omnipresence, ubiquity and meticulousness”. The color blue for the CIS embodies our spirit of being composed, calm and professional. The yellow ring symbolizes the transmission and reception of wireless signals (global network communication products).
Omnipresence: The communication products distributed by SNI shall be omnipresence to eliminate all obstacles for communication. Ubiquity: We shall give our best efforts to establish operating locations in as many areas and regions as possible. Meticulousness: Our services for customers shall be flawless and thorough.
Quality Policy: Quality that guarantees customer satisfaction.
SNI is committed to the following policy for quality management: “To ensure legal compliance while understanding and accomplishing customers’ expectations” as required by our service spirit of “customer satisfaction”. To this end, all SNI employees are required to attain a thorough understanding of the Company’s management philosophies and quality policy and actively carry through with these principles.
On December 4 2017, SNI upgraded its ISO 9001 Quality Management System Certification to the 2015 version.
Company Profile P07 Corporate Social Responsibility Policy
Guided by a human-centered spirit, SNI is committed to safeguarding human rights, helping employees to cultivate professional skills and increasing their sense of happiness within the corporation whilst actively working towards the creation of an environment that allows for mutual existence, prosperity and growth with society beyond the company. By facilitating economic growth and providing sound working conditions together with our supply chain, SNI shall continue to offer products that bring greater convenience and comfort to mankind. In the company’s operation, we endeavor to adhere to pertinent regulations and conduct our business with integrity to stay in-sync with the pulses of the international community, our society and neighboring communities as we incorporate various systems to promote transparent management. This will boost the company’s image and enable SNI to become a sustainable LOHAS enterprise. We pledge ourselves to promote the following aspects pertaining to fulfilling our corporate social responsibilities so that we could achieve sustainable operation.
To conduct our business with integrity and adopt transparent internal governance so as to maintain our profit for Economy sustainable operation whilst safeguarding the rights of stakeholders.
Environment To remain compliant to pertinent regulations, reduce energy consumption and develop eco-friendly products.
To protect employees’ rights and provide adequate training; create a LOHAS working environment that would Employees boost their cohesiveness and sense of happiness as members of the company.
To promote localized purchases, reduce packaging, reduce carbon emission from transportation, reject the use of Supply chain conflict minerals and promote sustainable green value chain.
To collaborate with employees in caring for communities, promote social welfare so as to boost the company’s Society image and facilitate sustainable operation.
Awards Received
March January April “EnGenius ETR150” and “EnStation _ SNI’s original brand EnGenius Wireless Switch (EWS) named as one of the Top Wireless AP” received the iF design “EWS 10 Tech Products for Small Biz at CES Award 2013. series” 2014 by U.S. IT magazine PCMag. received the Taiwan April March Excellence Silver “EnGenius ENH Dual-band Outdoor “High-Speed Long-Range Ceiling Quality Award for Access Point” received the Red Dot Mounted Wireless EAP600” received 2015. the Taiwan Excellence Silver Quality Award - Product Design 2014. Award for 2013.
2013 2014 2015
May May December “EnGenius ENH900EXT” and “ERB600” “Access Point (Nertron Managed AP)” “EnStation received the COMPUTEX d&i awards received COMPUTEX d&i awards 2014. Outdoor 2013. Long-Range December Wireless “EnGenius Personal Cloud Router December Ethernet Bridge” and “Neutron Wireless Series”, “Outdoor Ruggedized Wireless “Wireless IoT Gateway (EPG5000)” Access Point; Dual-Band AC1750 Managed Wall-Plate received the Taiwan Excellence Award Access Point” received EnGenius ENH1750EXT”, “1-Megapixel for 2015. Wireless Day/Night Mini Dome IP Surveillance the Taiwan Excellence Camera EnGenius EDS6110” and “1-Megapixel Award for 2016. Wireless IoT HD Day/Night IP Network Camera EnGenius EDS1130” received the Taiwan Excellence Award for 2014.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Milestones October 1 2006 Senao Networks, Inc., initiated as a spin-off company from the wireless product group of Senao International Co., Ltd. October 12 2006 Completed MOEA registration for company establishment. December 2008 Accredited to ISO 9001 Quality Management System Certification. March 2010 Accredited to ISO 14001 Environment Management System Certification. June 2011 Accredited to OHSAS 18001 Occupational Safety and Health Management System Certification. December 30 2013 Became listed on the GTSM. April 30 2015 Placed between the top 6~20% percentiles for enterprises in the 1st corporate governance scores. December 25 2015 Received official AEO Certification and former Keelung Customs Director Sung Ju-Yao presented the certificate in person on January 22 2016. January 2016 Implemented capital increase by means of employee stock option certificates and increased the Company’s capital to TWD 490,609,000. July 2016 Initiated EnGenius Networks, Inc. with a capital of TWD 30,000,000. November 11 2016 The Board of Directors’ Meeting resolved the motion to establish “Senao Networks Cultural Foundation”. November 30 2016 Acquired cash capital increase stocks of Emplus Technologies Inc. on the record date of cash capital increase and incorporated the Company’s revenues into SNI’s consolidated revenues effective from December 2016. January 5 2017 Transfer of rights to the site acquired at Hwa Ya Technology Park completed; the site was intended for the construction of production facility. November 28 2017 SNI’s education and training system passed the evaluation conducted by TTQS Taoyuan Hsinchu and Miaoli District Service Center. December 4 2017 SNI’s ISO 9001 Quality Management System passed the evaluation by TUV NORD and was upgraded to 2015 version.
June “IP Camera EWS1025CAM” received the Commercial Integrator BEST Awards 2017.
May August Received the “Exceptional Received the “Excellent Award” for outstanding import/ Award” for outstanding import/ export performance from New Taipei Importers and export performance from New Exporters Chamber of Commerce for 2016. Taipei Importers and Exporters September Chamber of Commerce for “Wireless Router EMR3000” named as CEDIA 2017 Best Of Show. 2015.
2016 2017
July October Received the Top 500 Label for Excellent Exporters/Importers Received the Top 500 Label for Excellent Exporters/Importers from the Bureau of Foreign Trade in 2016. from the Bureau of Foreign Trade in 2015. November Named as an Outstanding Green Purchase Private Organization for 2016 from the Environmental Protection Administration.
December ♦ Named as an Outstanding Green Purchase Enterprise for 2016 from Taoyuan City Government, Department of Environmental Protection. ♦ December 2017 received the Badge of Accredited Healthy Workplace from the Health Promotion Administration, Ministry of Health and Welfare.
Company Profile P09 Product Overview
SNI’s product lines include enterprise wireless communication products, wireless network (WLAN) series products, broadband network communication, surveillance systems, industrial PCs, power supplies, antenna and so forth. SNI has also made outstanding progress in the development of wireless network system products, wired network system products, enterprise wireless communication system products and network security monitoring systems. With regards to WLAN applications, our products have been designed with high power and high sensitivity in addition to exclusive MESH protocol technology to make products offer long-range and high-performance. This unique technology has also given SNI its leading edge over competitors.
Wireless Cloud Management Access Point
Dual-Band (2.4GHz/5GHz) Wireless Dual-Band (2.4GHz/5GHz) Wireless Ultra Long-Range Wireless CPE Access Point (MIMO Antenna) (4T4R) Access Point (MIMO Antenna) (featuring high-gain antenna design)
Indoor Ceiling Mount Enterprise Class Indoor Ceiling Mount Enterprise Class Single- Indoor Desktop and Wall-Plate Dual-Band Dual-Band Wireless Access Point (MIMO Band High-Power, High Penetration Wireless Wireless Access Point (MIMO Antenna) Antenna) Access Point Wireless IoT Gateway Industrial PC
Cloud Router Phone Router/ Wireless Network Router
Wireless Management Switch & UTM
Wireless Access Point Network Management Switch Control System (UTM)
PoE Switch
PoE Switch (8 ports) Layer 2 PoE Switch (L2: 8/24/48 Ports)
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Network Camera
Indoor Box Network Indoor Box Network Camera Outdoor Bullet Network Indoor Dome Network Camera Home Network Camera Camera Camera
VMS / Cloud Monitoring System Power supply unit
16/32 Channel Monitoring Software Surveillance Software 802.3af/at Compliant Proprietary 24V Proprietary 54V for Mobile Devices Gigabit PoE Adapter Compatible Compatible Gigabit 10/100 Mbps PoE Adapter PoE Adapter
Wireless Antenna
Dipole Antenna Sector Antenna Omni Antenna Panel Antenna 2.4GHz 5dBi 2.4GHz 2x2MIMO 16dBi 2.4GHz 2x2MIMO 10dBi 2.4GHz 2x2MIMO 20dBi 5GHz 7dBi 5GHz 2x2MIMO 19dBi 5GHz 2x2MIMO 13dBi 5GHz 2x2MIMO 23dBi 2.4GHz 3x3MIMO 12dBi 2.4GHz 3x3MIMO 10dBi 2.4GHz 3x3MIMO 16dBi 5GHz 3x3MIMO 15dBi 5GHz 3x3MIMO 13dBi 5GHz 3x3MIMO 19dBi
Enterprise Cordless / IP Communication System
1-Line Digital Long Range Enterprise 4-Line Long Range 4-Ling Digital Long Range Wireless Long-Distance Cordless Phone Enterprise Cordless Phone Cordless Telephone Walkie-Talkie (Range: 1~3 km) (Range: 1~3 km) (Range: 1~3 km) Cordless Two-Way Telephone (Range: 1~3 km)
Company Profile P11 Ratio o ro ct rno er in Recent ears nit ％
68.8 70.5 65.6 69.1 9 21.8 22.3 27.7 25.0 7.2 5.4 4.7 3.7 8 2.1 1.7 1.9 2.3 7 6 5 4 3 2 1
2014 2015 2016 2017 ear
N Syste ro cts ire Network Syste nterprise Cor less t ers Note ro cts I Co nication Syste
Note: The figures include revenues from network security monitoring system products, accessories and repair services.
Financial Performance
SNI has fully committed itself to sound operation and management of its communication and network products by making careful managements to its inventory and costs to increase profits. The Company has also been familiarizing itself with the customers of each region and domain while leveraging different means to deliver the products and services that different customers truly want. The profits made from product distribution have been reciprocated to relevant stakeholders who have taken part in SNI’s operations, including our shareholders, employees, customers, suppliers and the government. By working hand in hand with our employees and acting as one, we shall strive to fulfill SNI’s corporate social responsibilities. Each year, the government provides financial support such as concessions, rewards and subsidies for specific industries based on relevant policies on economy, industry and currency in order to facilitate the promotion and implementation of relevant policies. SNI has been keeping in touch with relevant government agencies in order to better understand relevant policies and plans and the Company will continue to find out more on pertinent government regulations in order to receive aid in the following areas: house tax, land tax payment incentive, IP rewards, loan interest subsidies, credit guarantee subsidies, export subsidies and so forth. For relevant policies and programs that are applicable to SNI, the Company would submit applications and make effective use of government resources to lighten the financial burden on the Company for adhering to pertinent policies as we improve our competitiveness in the market and ultimately generate sufficient profit to fulfill our corporate social responsibilities.
Consolidated financial statement Unit: in TWD 1,000
Item \ Year 2013 2014 2015 2016 2017
Net operating revenue 4,981,306 6,183,802 7,584,018 6,636,546 8,461,979 Operating costs 3,521,044 4,393,820 5,534,194 4,861,777 6,695,943 Gross profit 1,460,262 1,789,982 2,049,824 1,774,769 1,766,036 Operating expenses 1,021,233 1,106,842 1,269,567 1,166,457 1,244,916 Income before tax 486,763 737,298 938,263 672,528 576,212 Consolidated net income attributed to 421,916 611,779 811,958 560,416 467,942 stockholders of the Company Disposition of net earning 332,426 513,729 711,341 452,299 349,762 Income tax 64,847 125,519 126,305 93,807 87,447 Income tax deduction 11,667 16,864 20,293 - - Income tax credit 20,293 13,184 19,030 22,166 22,141 Community donations and investments 270 120 200 79 50 Expenses for interest payment 237 344 362 1,119 1,461 Expenses for employee benefits (personnel 936,892 1,078,009 1,253,501 1,139,486 1,232,151 expenses)
Note: Personnel expenses include remuneration, labor and health insurance coverage, pension fund contribution, employee services and benefits, group insurance coverage, employee wage and other personnel related expenses. Disposition of net earning includes legal reserve, special reserve and cash dividend.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Shareholder Structure (Percentage of share in possession) Unit: %
Government Financial Other legal Foreign organizations and Year Individuals Treasury stock Total agencies institutions entities foreign investors
2013 0 0 55.61 39.73 4.66 0 100.00 2014 0 0 61.97 30.44 7.59 0 100.00 2015 0 0 56.42 28.94 14.64 0 100.00 2016 0 0 49.19 38.86 11.95 0 100.00 2017 0 0 47.88 44.90 7.22 0 100.00 In 2017, Senao International Co., Ltd., has been responsible for the operation of Senao Networks, Inc. (with 33.79% of the Company’s shares in possession).
Inco e ta in recent years ia ra o o ern ent s bsi ies an ta rebates nit in
64,482,593 94,980,025 147,601,911 110,571,863 97,102,146 18 56,491,101 81,458,253 119,448,538 83,830,648 74,445,672 16 7,991,492 13,521,772 28,153,373 26,741,215 21,656,474 14 12 10 8 6 4 2
2013 2014 2015 2016 2017 ear
Inco e ta payable ct al ta pay ent o nt o s bsi ies an ta rebatesy
In 2017, SNI received approximately TWD 21.66 million in government tax subsidies and tax rebates. In 2017, SNI’s operating income came to TWD 8,461,979,000 – an increase by TWD 1,825,433,000 compared to TWD 6,636,546,000 for 2016. Our net profit before tax for 2017 was TWD 576,212,000, which is TWD 96,316,000 less compared to TWD 672,528,000 for 2016. SNI’s earning per share came to TWD 9.54 in 2017. Although it had been a slight decline compared to TWD 11.42 for 2016, the Company has still managed to make a profit that is closed to its initial investment capital. SNI takes pride in the fact that ever since its initiation in 2006, the Company has been able to maintain its profit margin over the years. For more information, please refer to the chart of SNI’s EPS run below. 18 Chart of EPS run over the years EPS 16 2.03 4.3 2.3 2.87 3.18 4.22 7.16 10.03 12.63 16.6 11.42 9.54 14 12 E 10 P S 8 6 4 2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Year)
Statistics of operating income, production and distribution quantity for different products over the years Unit: in TWD 1,000
Year 2015 2016 2017
Operating Production Distribution Operating Production Distribution Operating Production Distribution Business Activities income quantity quantity income quantity quantity income quantity quantity (TWD 1,000) (unit) (unit) (TWD 1,000) (unit) (unit) (TWD 1,000) (unit) (unit)
WLAN System Products 5,348,792 2,839,215 2,548,073 4,351,300 2,160,055 2,127,380 5,843,000 2,837,748 2,933,446 Wired Network System 1,690,874 295,638 309,406 1,836,591 351,942 406,885 2,117,750 426,325 647,607 Products Enterprise Cordless / IP 405,661 44,599 43,510 312,645 30,597 31,736 309,307 32,114 30,459 Communication System Others (Note) 138,691 58,646 663,158 136,010 269,571 485,325 191,923 340,057 1,302,960 Total 7,584,018 3,238,098 3,564,147 6,636,546 2,812,165 3,051,326 8,461,979 3,636,244 4,914,472
Note: The figures include revenues from network security monitoring system products, accessories and repair services.
Company Profile P13 Global Deployment
In the past, SNI focused on enterprise class network communication equipment with products covering indoor and outdoor wireless access points, wireless management switches, industrial PCs (IPC), PoE switch, IP cameras, long-range wireless phones, wireless router for home use and so forth. Our product lines cover different applications for video, audio and data transmission and can be integrated into complete suites for secured data communication, VoIP and security surveillance systems to offer customers comprehensive networking solutions. With the advancement in WLAN technologies, 802.11ac is poised to facilitate the needs for 3rd platforms (i.e., cloud services, mobile connect, big data and social commerce) development. Smart connection for home appliances, cloud services, 4G LTE, big data, software-defined network (SDN) and Internet of Things (IoT) shall become the key factors that propel the next wave of growth for the telecommunication industry. The emergence of IoT has opened the door to ubiquitous integration for small (i.e., personal mobile wearable devices) and large (i.e., city-wide network services) applications alike. The quantity of devices connected to IoT is expected to skyrocket in the next few years as most of the objects we encounter in our day-to-day lives will eventually be intricately tied to the internet, gradually making IoT into a true digital world. According to the forecasts by the U.S. based global research and advisory Gartner, the number of devices around the world connected to IoT will reach 20.8 billion by 2020. SNI will stay abreast with the latest trends of IoT, which is a new concept of networking that is made possible with the integration of multiple technologies, including physical broadband network, high-speed wireless network, sensor technologies, cloud computing, big data center and so forth. In terms of product planning and development, the Company will strive to improve the compatibility of existing products for various IoT applications in order to achieve solid grasp of existing opportunities and prepare for future demands. SNI shall raise the bar of entry for competitors with its technological edge and quality and leverage platform design to make its products more competitive.
Short-term and long-term business development plans
1. Plan for short-term business development (1) Reach out to more strategic collaboration partners in the market Potential targets include wired switch manufacturers, enterprise class equipment distribution channel operators, system integrators, ISP(Internet Service Provider) and so forth. (2) Strengthen the collection of market intelligence and better understand customers’ needs Through responses from customers pertaining to their needs, SNI shall learn about customers’ network framework and applications and contact their frontline users to determine the right directions for product development. (3) Strengthen our ties with technical and strategic collaboration partners This includes key component manufacturers, third-party equipment manufacturers, software suppliers and so forth and seek possibilities for collaboration on key technologies to reduce development time and time costs. (4) Strengthen our system equipment distribution and service capabilities SNI shall endeavor to improve the technical expertise and service competence for our distribution engineers, application engineers and customer service personnel. (5) Strengthen product design and manufacturing quality While enterprise class system equipment are sold at higher prices, customers would in turn have higher expectations in terms of product quality, not to mention the fact that relevant costs for maintenance and troubleshooting would create huge costs after the products have been set up and entered operation on top of the irreparable damage on SNI’s brand image. It is vital that SNI pays equal attention to product design and quality. (6) Boost the strength of marketing to create more exposure for SNI's EnGenius brand Through sustained exposure on various marketing media (especially digital media) to showcase our technological products and applications, we will be able to help our corporate clients better understand and trust the implication, design, quality and services that is embodied by the EnGenius brand.
2. Plan for long-term business development (1) Increase our leading edge for industrial class WLAN products Our priorities for product development will focus on features such as simple and highly secured software installation, professional software that offers intuitive operation, wireless data transmission of high stability, high quality RF circuit design, greater working temperature range (-40~80°C) and so forth. (2) Develop cloud technologies to help customers enjoy the convenience that cloud services have to offer From single device usage management, small area management, large enterprise class management all the way to cloud management, we will not only help customers to use EnGenius products with great ease and convenience but also achieve direct contact with customers’ environments through EnGenius products to provide superior service quality. (3) Through the re-design of relevant cloud products, we shall utilize relevant technologies on our original ezMaster product line as a way to cater to a portion of the customers who are reluctant to adopt cloud services by improving the products with more powerful functionalities. (4) Continue to pursue refinement in hardware development and design in order to attain the best circuit design possible in conjunction with software that are being optimized for greater stability to achieve optimal operability. Reshape SNI’s brand image as a leading manufacturer of next-gen industrial / enterprise class products. (5) Seek out reliable SI / VAR / National Distributors in potential offshore markets and cultivate local sectors.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Operating income by regions of distribution Unit: in TWD 1,000
year 2015 year 2016 year 2017
Total Total Total 7,584,018 6,636,546 8,461,979
USA 5,547,156 73.14% USA 4,349,280 65.54% USA 6,848,572 80.93% Europe 332,742 4.39% Europe 329,468 4.96% Europe 178,759 2.11% Taiwan 617,348 8.14% Taiwan 1,069,138 16.11% Taiwan 600,801 7.10% Others1,086,772 14.33% Others 888,660 13.39% Others 833,847 9.85%
Organizational chart for affiliated businesses
Senao Networks, Inc.
Senao International EnGenius EnGenius Networks, Inc. Emplus Technologies, Inc. (Samoa) Ltd. Technologies, Inc. Shareholding ratio: 100% Shareholding ratio: 100% Shareholding ratio: 100% Shareholding ratio: 51.9%
Profile of affiliated businesses As of December 31 2017, Unit: In Thousand EnGenius International Date of Primary lines of business / items of (Samoa) Ltd. Name of affiliated business Address Paid-up capital establishment production Shareholding ratio: 100% EnGenius Technologies, Inc. 1999.2 Los Angeles, USA USD 2,000 Distribution of communication products Senao International (Samoa) Ltd. (Note) 2002.12 Samoa USD 3,874 Spin-off investment EnGenius Networks Singapore Pte. Ltd. EnGenius International (Samoa) Ltd. (Note) 2002.12 Samoa USD 3,190 Spin-off investment Shareholding ratio: 100% EnGenius Networks Singapore Pte. Ltd. (Note) 2003.5 Singapore USD3,150 Distribution of communication products EnGenius Networks Europe B.V. 2011.3 Netherlands EUR 210 Distribution of communication products EnGenius Networks, Inc. 2016.7 Taiwan NTD30,000 Distribution of communication products EnGenius Networks Development, manufacturing and Emplus Technologies, Inc. 2012.10 Taiwan NTD104,290 Europe B.V. distribution of communication products Shareholding ratio: 100% Note: Capital increase in November 2017.
SNI’s Networks Inc.’s global operating locations
Netherlands
Taiwan (headquarters) Dubai Los Angeles Hua Ya Plant (Plants 1 and 2) Neihu R&D Center (Note) Zhubei R&D Center (Note) Nangang R&D Center Singapore
Note: When the leases of SNI’s offices in Neihu Distict, Taipei City and its R&D Center in Zhubei City expire, these functions will relocate to the offices in Nangang District, Taipei City to merge with the Nangang R&D Center, which opened on May 2 2017.
Company Profile P15 Integrity management and sustainable management - safeguarding stakeholders'
January 2016 July 2016 December 2017 rights Received AEO (Authorized Established Holding 40 Economic Corporate Social patents in Operator) responsibility countries around Certification Committee the world
In July 2016, SNI formally established its Corporate Social Responsibility Committee to gradually establish relevant tasks and culture for corporate social responsibilities. On April 26 2017, the Board of Directors resolved the motion to approve SNI’s Corporate Social Responsibility Guidelines, which was formulated based on “GRI G4 Guidelines for Corporate Social Responsibility” as the baseline for relevant promotions in order to ensure a safe working environment, adequate assessment and prevention of corporate operational risks, adequate protection and regard for employee benefits, pollution prevention for various processes and product manufacturing and fulfillment of our corporate social responsibilities. SNI will gradually establish its platform for supplier communication with relevant planning to promote “Electronic Industry Code of Conduct” (EICC), relevant indicators of Corporate Social Responsibility GRI G4 Guidelines, product carbon footprint and water footprint validation, restricted substance regulation for products, GHG inventory and reduction, water inventory and reduction, waste inventory and reduction to suppliers who are collaborating with us in the hopes that our supply chain system will be steered towards sustainable development.
Corporate Governance SNI’s long-term vision involves utilizing communication technologies and artificial intelligence to close gaps of communication, creating wonderful and humanistic wireless lifestyles while satisfying the needs of our customers, safeguarding the benefits of our employees and seeking profit for our shareholders. Combining the attitudes of “morality, order and responsibility” that is embodied by the dove and our spirits of “composure, calm and professional”, we shall adhere to our service philosophy of “omnipresence, ubiquity and meticulousness” in different endeavors such as the development of new network communication products, manufacturing and marketing to satisfy customers’ needs and promote social welfare in our pursuit for corporate sustainable management and growth. With regards to legal affairs, SNI shall comply with pertinent laws and regulations such as the Company Act, Securities and Exchange Act, Business Entity Accounting Act, regulations concerning TWSE/TPEx listed companies and other relevant laws pertaining to other business activities. In addition, the Company shall take a neutral stance with regards to public policies and make no financial or tangible political contribution in order to ensure its foundation for integrity management.
Board of Directors operation The Board of Directors functions as SNI’s highest governing body and an Audit Office has been established under the Board of Directors to be responsible for auditing the Company’s administrative systems and relevant operating processes. SNI has established the position of CEO, who is responsible for receiving instructions from the Chairman to plan for the Company’s operational development and management strategies for the future. Presently, the Chairman is temporarily serving concurrently as the CEO. SNI’s directors are candidates who have the required credentials and competence to serve on the board and elected by the Shareholders’ Meeting. According to Article 12 of Rules and Procedures of Board of Directors’ Meeting: “Company Operational Plan” and “Establishment / Revision of Internal Control System Pursuant to Article 14-1 of the Securities and Exchange Act” shall be submitted to the Board of Directors for discussion. According to Article 25 of SNI’s Corporate Charter: “The President shall be responsible for managing the Company’s various affairs as resolved by the Board of Directors”. SNI is committed to sound company management, and as such, all directors and supervisors have been elected by the Shareholders’ Meeting. In addition, the Board of Directors meets at least once per quarter in order to ensure appropriate management of the Company’s performance and maximum profit for shareholders. Article 15 of “Rules and Procedures of Board of Directors’ Meeting” states the following on avoidance of conflict of interest for directors: “For any proposal in which a director or the legal person he/she represents is an interested party, the director shall explain the important aspects of his/her interest at the Board meeting. When his/her interest is likely to compromise the interest of the Company, the director shall not participate in the discussion and voting on the proposal and the director shall recuse him/herself from discussion and voting on the proposal and may not exercise the right to vote for and on behalf of another director”. Article 23 of SNI’s Corporate Charter clearly states that the Company shall purchase liability insurance coverage for its directors, supervisors and key personnel and from 2006 onward, each director and supervisor shall be covered by liability insurance. Refer to the link to SNI’s information on MOPS website http://mops.twse.com.tw/mops/web/t135sb03
Senao Networks, Inc. Corporate Social Responsibility Report 2017 The previous directors’ election was completed in June 2016 by the Shareholders’ Meeting. A total of 4 directors, 3 independent directors and 3 supervisors were elected; among the supervisors elected, 2 are female. In 2017, 5 Board of Directors’ Meetings were held, with an average attendance of 91% for BOD members. Directors who attended the meetings have enthusiastically discussed the motions and proposals that were presented and followed up on past resolutions. In the reviews for proposals that related to specific directors’ interests, all directors adopted the highest moral standards and avoided taking part in the discussions and voting for said proposals. SNI Board of Director Members
Title Name Academic credentials and previous experiences Master’s degree in International Business, National Taiwan University; Chairman Tommy Tsai President, Delta Networks, Inc. General Manager, Networking, LITE-On Technology Co., Ltd. Senao International Co., Ltd. Graduated from Tung-Shin Junior High School; Director (Representative: Lin Pao-Yung) Chairman, Senao International Co., Ltd. Department of Electrical Engineering, National Kaohsiung University of Applied Sciences; Senao International Co., Ltd. President, Chunghwa Telecom Taiwan Northern Telecom Branch; Director (Representative: Cheng Min- Director, Senao International Co., Ltd.; Ching) Chairman, Honghwa International Corporation Master’s degree, Department of Mechanical Engineering, Northwestern University; Director Chen Jiang-Ming President, Yahoo! Taiwan Doctor of philosophy, H. Wayne Huizenga College of Business & Entrepreneurship, Nova Southeastern University; Independent Shih Kuang-Hsun President, CTBC Business School; director Professor and Dean, College of Business, Chinese Culture University Master’s degree, Institute of Business Management , National Chiao Tung University; Independent Chang Yi-Min Assistant Vice President, Department of Investment, Hotung International Co., Ltd.; director Manager, Department of Investment, Concord Venture Capital Group B.S, Department of Animal Husbandry, National Taiwan University; Independent Chen Hui-You Chairman, Value Partners Concord Asset Management; director Chairman, Choice Development Inc. B.A, National Taipei University of Business; Chengfung Investment Co., Ltd. Section chief, Department of Finance, Senao International Co., Ltd.; Supervisor (Representative: Cheng Su- Supervisor, Hua Shun Investment Co., Ltd.; Yue) Assistant Manager of Finance, Chengfung Investment Co., Ltd. MBA, City University of New York; Supervisor Hsieh Chih-Ling Assistant Vice President, Department of Finance, KBC Bank NV Graduated from Yu Da High School of Commerce and Home Economics; Supervisor Lin Ke-Min Chairman, Ciun Ta Enterprise Co., Ltd. Director, Taiwan Taxi Co., Ltd.
Description of SNI Board of Directors’ Member Composition Year: 2017
Item Unit All members Male Female
No. of Board of Directors’ Member Person 10 8 2 No. of directors under the age of 30 Person 0 0 0 Ratio of directors under the age of 30 % 0 0 0 No. of directors between the age of 30 Person 3 2 1 (including) and under the age of 50 Ratio of directors between the age of 30 % 30 25 50 (including) and under the age of 50 No. of directors over the age of 50 (including) Person 7 6 1 Ratio of directors over the age of 50 (including) % 70 75 50
Remuneration Committee Pursuant to Article 14-6 of the Securities and Exchange Act, in order to ensure sound corporate governance and remuneration system for the Company’s directors and managers, SNI has established its Remuneration Committee on October 13 2011 in accordance with Article 2 of the Remuneration Committee Charter: “Members of the Remuneration Committee shall be appointed by the Board of Directors with no less than 3 members in total”. On June 14 2016, independent directors Shih Kuang-Hsun, Chang Yi-Min and Chen Hui-You serving in the 5th term of the Board of Directors have been appointed as SNI’s Remuneration Committee members (3rd term).
SNI’s Remuneration Committee had held 2 meetings (A) in the last fiscal year (2017), with the following member qualifications and attendance as follows:
Actual attendance rate Title Name Actual attendance (B) Attendance by proxy (%) (B/A)
Chair person Shih Kuang-Hsun 2 - 100 Member Chang Yi-Min 2 - 100 Member Chen Hui-You 2 - 100
Integrity management and sustainable management - safeguarding stakeholders' rights P17 SNI’s Remuneration Committee is authorized by the Board of Directors to: “1. Establish and periodically review the performance of directors, supervisors and managers and assess policies, systems, standards and structures of remunerations and wages; 2. Periodically review and establish appropriate remuneration and wages for directors, supervisors and managers.” The Remuneration Committee is expected to duly perform its duties and answer to the Board of Directors by submitting its suggestions and proposals to be discussed by the Board of directors as stipulated in Article 3 of the Remuneration Committee Charter. The Remuneration Committee may exercise its rights to carry out relevant audits or provide consultation by means of resolution or through appointed attorney / consultant or other professionals. Factors such as gender or age have no bearing on the remuneration for SNI’s management; remuneration shall be established with due prudence in the consideration of criteria such as the Company’s operational performance, future risks, individual performance of the managers and the established wage standard in domestic/foreign sectors and so forth in order to accurately reflect managers’ individual and team performances so as to achieve the objectives of talent recruitment, incentive for talents and talent retention. SNI’s wage and remuneration operations have been implemented as follows: 1. Fixed monthly remuneration for independent directors/supervisors: to be determined by the Remuneration Committee based on their level of participation and contribution in the Company’s operation and submitted to the Board of Director for review prior to approval. Staying true to the spirit of corporate governance, all directors and supervisors serving on the 5th term of the Board of Directors have been collecting fixed remuneration without receiving the annual contribution for directors and supervisors. This remuneration proposal had been submitted by the Remuneration Committee on July 20 2016 and approved by the Board of Directors on August 3 2016. 2. Annual remuneration for directors: to be determined by the Remuneration Committee by referring to the remuneration offered by competitors and past standards as stipulated by Article 28 of SNI’s Corporate Charter before the proposal is submitted to the Board of Directors for review prior to approval. 3. Remuneration for managers: (1) Contracted wage upon appointment/wage adjustment: to be determined in accordance with SNI’s wage and remuneration regulations after the Remuneration Committee has determined the job grade for the appointment and the Chairman has approved the salary before the proposal may be submitted to the Board of Directors for review prior to approval. (2) Year-end bonus/compensation: to be determined in accordance with SNI’s wage and remuneration; the Remuneration Committee shall propose the total allotted amount and method of payment and authorize the Chairman or formulate specific solutions directly to be submitted to the Board of Directors for review prior to approval. The wages and remunerations for directors, supervisors and managers shall be determined by the Remuneration Committee, approved by the Board of Directors and disclosed in the Company’s annual report. During the Board of Directors’ reviews for remuneration proposals, directors whose interests were in conflict with the proposal have complied with pertinent regulations by refraining from taking participate in the process.
Note: 1. Pursuant to Article 28 of SNI’s Corporate Charter: When the Company makes profit in a fiscal year, no less than 3% of the profit shall be appropriated to employees’ compensations and no more than 3% of the profit shall be paid to directors and supervisors as part of their remuneration. 2. Manager: Defined as managerial staff of the Vice President (including) and higher job grades.
Remuneration for the Management Unit: in TWD 1,000
financial item\Annual 2011 2012 2013 2014 2015 2016 2017
Approximate remuneration paid to the management (including directors and 32,282 31,961 44,700 56,089 61,845 56,531 58,766 managerial staffs of VP and higher job grades)
The bulk of SNI’s management comprises the directors and managerial staffs of VP and higher job grades. The amount of annual remunerations paid to the management includes their wages, bonuses, special allowances, execution fees and extra dividends. The remuneration for management staffs are disclosed in SNI’s annual financial statement. Refer to the link to SNI’s information on MOPS website http://mops.twse.com.tw/mops/web/t57sb01_q5
Senao Networks, Inc. Organizational Chart
Board of Directors Remuneration Committee Auditor’s Office
Overseas Support Department President’s Office Logistics Business Department Department Department Department Management Management IT Department IT R&D Resource Brand Business R&D Department Sales Department Labor Safety Office Legal Affairs Legal Affairs Section
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Functions of Each Department
Department Duties and Responsibilities
1. Prescribe and periodically review the performance review and remuneration policy, system, standards, and structure for directors, Remuneration supervisors and managerial officers. Committee 2. Periodically evaluate and prescribe the remuneration of directors, supervisors, and managerial officers. 1. Plan and execute the internal audit plan and provide advice. Auditor’s Office 2. Conduct the audit on internal procedures and order the project improvement plan. 3. Investigate and evaluate soundness, reasonableness, validity and status of various departments’ internal control systems. Overseas Support Responsible for promoting and carrying out business overseas and achieving the sales target. Department 1. Coordinate the President to manage the Company’s business. 2. Set and boost the business objectives. President’s Office 3. Integrate the execution, coordination and planning organizational structure of various units’ business. 4. Supervise the preparation and execution of the annual business plan and budget. Brand Business Responsible for promoting and carrying out private brand sales and overseas sales. Department 1. Responsible for sale of products, development of new customers, customers’ service, processing of customers’ complaints and return of goods. Sales Department 2. Provide customer and market information to help verify the market orientation and establish the pricing strategy for products.
1. Develop new products per the Company’s need and in accordance with the internal standard operating procedures. 2. Forward-looking planning, coordination and services for related technologies and technical issues. R&D Department 3. Establish and maintain the Company’s core technological competency. / R&D Resource 4. Establish and maintain R&D Dept.’s R&D achievement. Department 5. Provide technological supporting to customers domestically and overseas. 6. Accumulate and maintain intellectual property and apply for patents.
1. Develop the Company’s quality policy and continue to boost the quality improvement. 2. Implement quality systems and process customers’ complaints. Logistics 3. Execute quality control: Incoming quality control, in-process inspection and outgoing quality control. Management 4. Responsible for management of production, output and abnormality of products, use of raw materials and supplies, and scrapping. Department 5. Responsible for maintenance of the worksite and execution of labor safety work, and training, performance evaluation and training, permission of leave for workers. 6. Arrange and execute annual/monthly production plan.
1. Plan, manage and execute the financial management, financial project assessment, customers’ credit investigation and accounts receivable. 2. Prepare financial and tax accounting, management accounting, various financial statements and budgets, and provide management information. Business 3. Plan and execute the establishment of, amendment to and promotion of human resource and regulatory systems. Management 4. Procure and manage various equipment and general supplies. Department 5. Maintain and manage the Company’s environment. 6. Process affairs related to board of directors’ meetings and shareholders’ meetings and maintain relations with investors. 7. Coordinate the Company’s CSR affairs and manage the results thereof.
Legal Affairs Control legal risk over operation, and process litigious and non-litigious matters and maintain intellectual property rights. Section IT Department Responsible for overall planning, construction, maintenance and integration of the Company’s IT-based operations. Labor Safety Responsible for planning, supervising and promoting the Company’s SHE affairs. Office Auditor’s Office In order to ensure due implementation of integrity management, SNI has adhered to the “Regulations Governing Establishment of Internal Control Systems by Public Companies” and established effective accounting system and internal control systems, which are subject to periodic audit by Audit Office internal audit personnel to ascertain the compliance of the aforementioned systems. The Audit Office is a subordinate unit under the Board of Directors and answers directly to the Board. At the end of each year, the Audit Office will draft the audit plan for the following year and submit the plan to the Board of Directors’ for approval before it is declared to the competent authority. In addition to being submitted to the Chairman for review, the written audit report shall be submitted to independent directors and supervisors for perusal within the legally required timeline. Not only that, representatives of the Audit Office shall attend Board of Directors meetings to periodically report the outcome of audit operations. In the event of major incidents or when anomalies/oversights have been discovered, the Audit Office shall report to the directors and supervisors immediately to ensure effective and timely control of relevant risks. Anomalies/oversights identified during the process of audit shall be filed and archived accordingly for periodical inventory and follow-up until all rectifications have been made. No anomalies or oversights in internal control have been found in 2017.
Item\Year 2011 2012 2013 2014 2015 2016 2017
Total no. of internal control oversights 2 3 1 0 1 0 0
No. of incidents under improvement 0 0 0 0 0 0 0
No. of incidents that have been rectified 2 3 1 0 1 0 0
No. of incidents yet to be rectified 0 0 0 0 0 0 0
Integrity management and sustainable management - safeguarding stakeholders' rights P19 Code of Conduct SNI has established its “Code of Ethical Conduct”, which consists of explicit principles for directors, supervisors and managers to abide by, including upholding the value of honesty and integrity, preventing conflicts of interests, refraining from pursuing self-interest, adhere to their obligations for non- disclosure, promoting fair trade, ensuring adequate protection and use of company assets, facilitating legal compliance and encouraging the reporting of all illegal or conducts that violate the Code of Ethical Conduct to prevent unethical conduct or actions that could damage the interests for the Company and its shareholders. SNI has also established its “Ethical Corporate Management Best Practice Principles” that clearly forbid the Company’s directors, supervisors, managers and employees from offering / accepting bribes, offering illegal contributions, inappropriate charitable donations / sponsorships, offering / accepting inappropriate gifts, offers of entertainment or other illegal profits to prevent employees from compromising the Company’s rights for the sake of their self-interests. The principles enable SNI to establish a corporate culture that revolves around ethical management for sound developments and positive commercial operations. To ensure due implementation of ethical management, the Company has established effective accounting system and international control systems. Internal auditors from the Audit Office are responsible for conducting periodical audits on managers and employees at each site on their status of compliance. In addition to “Code of Ethical Conduct” and “Ethical Corporate Management Best Practice Principles”, SNI has also established its “Work Ethics Manual”, which managers and employees are required to sign when they report for duty as a way to reinforce the Company’s spirit of anti-corruption. Together with the “Code of Ethical Conduct” and “Ethical Corporate Management Best Practice Principles”, the manual also serves as fundamental guidelines for relevant training and dissemination for board members, managerial staffs and employees to ensure that all members of the Company have adequate understanding on the Company’s regulations and principles on ethics, thereby preventing incidents of corruption from occurring. In August 2017, SNI has set up the Company’s anti-corruption liaison mailbox on the Company website and established its whistleblower protection mechanism to protect the informants’ identity and prevent acts of retaliation. Thus far, SNI had no incident of corruption or legal violation and will continue to work hard to uphold the Company’s reputation, encourage the spirit of professionalism and keep up with its ethical conduct. In addition, we will continue to promote ethical and anti-corruption training for board members, managerial staffs of all levels and employees along with the periodic training (once every three years). Through various channels such as the Company’s intranet, SNI has been promoting “Prevention of gender and employment discrimination – sexual harassment in the workplace” on a non-regular basis for employees. Starting from 2016, SNI has been organizing its “Prevention of gender and employment discrimination – sexual harassment in the workplace” training (1 hour), with contents covering human rights and sexual harassment. The training is mandatory for new employees at SNI. Presently, all new employees and existing employees have received their training for “Prevention of gender and employment discrimination – sexual harassment in the workplace” in 2016 but no further training has been held thus far. In the near future, the Company is planning to complete company-wide EICC training in 2021 along with re-training once every three years. In addition, SNI will also promote its EICC and human rights review statistics and impact evaluation so as to establish management procedure for human rights review and impact assessment, which will in turn ensure safety in the work environment and that relevant employee rights are protected and respected, which will facilitate relevant internal audits.
For the anti-corruption liaison mailbox, please refer to the link for SNI’s company website: http://www.senao.com/Taiwan/default.aspx?TYPE=test. htm&PT=DespageN&tv_TCAT_POS=0&PID=G1&CATNO0 For details on SNI’s Ethical Corporate Management Best Practice Principles, Code of Ethical Conduct, Work Ethics Manual and Operating Procedures for the Prevention of Insider Trading, please refer to the link to SNI’s company website: http://www.senao.com/Taiwan/default.aspx?TYPE=test.htm&PT=DespageN&tv_ TCAT_POS=0&PID=H3&CATNO0
Statistics of human rights training completion for employees in 2017
Item Unit All Male Female
No. of new employees who have completed their human rights training in 2017 Person 119 82 37 Human rights training completion rate for new employees who have % 53.60 89.13 28 joined SNI in 2017 No. of SNI’s existing employees who have completed their human rights Person 692 329 363 training for 2017 (initial training) No. of SNI’s existing employees who have completed their human rights Person 0 0 0 training for 2017 (re-training) Human rights training completion rate for existing employees and new % 76.51 87.45 67.80 employees who have joined SNI in 2017 Total number of human rights training hours completed in 2017 (1/2 hour Hour 406 206 200 per employee) No. of employees who have yet to receive their human rights training Person 249 59 190 Ratio of existing employees who have completed their human rights training % 76.51 87.45 67.80 Note: Total number of human rights training hours completed = Total number of participants in the “Prevention of gender and employment discrimination – sexual harassment in the workplace” training X 1/2 hour The “Prevention of gender and employment discrimination – sexual harassment in the workplace” training lasts for an hour, half of which is the duration for human rights training.
Financial Information Disclosure and Investor Communication SNI has established its spokesperson system along with dedicated staff responsible for stock related affairs and investor relations as channels for information announcement and communication. Prior to the 10th of each month, SNI publishes the revenue for the previous month, including the statistics of products sold. At the same time, relevant company information, financial information and information of significance are disclosed on MOPS as required by law. Each year, SNI holds its Shareholders’ Meeting, during which shareholders are entitled to submit proposals to the Company as stipulated in The Company Act. The company’s senior management team will also illustrate and communicate SNI’s strategies for future developments during the meeting to ensure that investors have adequate understanding of the Company’s operational guidelines. Should employees or shareholders wish to express their opinions to SNI’s supervisors, the Company has also dedicated personnel responsible for compiling employee/shareholder inputs and relaying them to the supervisors. Relevant opinions/inquiries will also be included into the Company’s rationale for its operation management activities. SNI has been actively improving the transparency of its corporate management so that stakeholders could have access to more reference data in their investment related decision-making.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Corporate Social Responsibility Committee
Driven by its philosophies for sustainable operation, SNI is committed to its promotion of corporate social responsibilities and as such, the Company has called upon all employees to participate in relevant implementations by establishing its Corporate Social Responsibility Committee in July 2016; with the President serving as the chair of the Committee, the Corporate Social Responsibility Committee is in charge of seven functional subordinating committees, namely Human Rights and Social Facilitation, EHS, Green Manufacturing Process, Internal Control, Product Liability, Supply Chain Management and Prospective Innovation Committees. The company has also established its corporate social responsibility policies to steer the Company efforts and promotions in various aspects of “economy”, “environment”, “employee”, “supply chain” and “society”. The Corporate Social Responsibility Committee meets on a quarterly basis to establish the Company’s annual management guidelines and action plan. The seven ▲ SNI’s Corporate Social Responsibility Committee was established subcommittees under the Corporate Social Responsibility are chaired by VPs and Assistant VPs responsible for relevant affairs. These subcommittees organize work meetings andin July self-assessment 2016 action plans on a monthly basis to drive relevant progress and performance. Hopefully, through the ceaseless cycles from top-to-bottom and bottom-to-up operations, SNI will be able to achieve seamless integration between its corporate social responsibilities and operational strategies. Each Corporate Social Responsibility subcommittee is tasked with the facilitation of relevant action plans that have been drafted among relevant departments and units in accordance with their functions while advocating for employees to take specific actions in their day-to-day lives by contributing to a comfortable and joyful atmosphere in the working environment so that employees could benefit from healthy and balanced lifestyles. As the Company develops eco-friendly green products to reduce impact on the environment, we shall spread this momentum of energy-conservation, carbon- reduction and environmental-protection to our upstream and downstream suppliers, customers, communities and members of employees’ families in our operating locations. These subcommittees will work hand-in-hand to establish our green concept from within and extend it outward in our external eco-friendly actions so that our stakeholders can better appreciate SNI’s management and efforts in fulfilling its corporate social responsibilities.
Organizational Chart of SNI’s Corporate Social Responsibility Committee
or orate o ial es onsibility ommittee resident
onsultant e uti e e retary
reen uman ights ros e ti e u ly hain rodu t iability Inno ation anagement anufa turing and o ial ommittee ommittee ro ess a ilitation ommittee ommittee ommittee
Internal ontrol ommittee ommittee team team team team reen marketing reen ur hasing reen design team rodu t safety team reen de elo ment reen trans ortation reen lanning team
Functional description of each committee under the Corporate Social Responsibility Committee
1. Assist the function of the Board of Directors, protect the rights of shareholders and stakeholders in addition to integrating regulations and management Internal Control procedures for relevant governance indicators. Committee 2. Responsible for implementing relevant internal control systems and transparent operation in accordance with the Company’s core values. 3. Steer the Company’s strategic deployments and future operational trends. Green Manufacturing 1. Steer the Company’s efforts in relevant issues including energy conservation, water conservation, packaging reduction, clean production and so forth. Process Committee 2. Steer the Company’s actions in the use of pollution prevention equipment, machinery use and relevant protections. 1. Human resource planning, safeguarding employees’ basic labor and human rights along with the promotion of the Company’s core values: rapid, Human Rights and accountable, creative, passionate, cooperation and integrity in order to ingrain these values in the works and lives of our employees. Social Facilitation 2. Direct the Company’s external communication with communities and the society; commit to the long-term promotion of activities for education, arts and Committee culture, charitable events and so forth. 3. Green activity planning. 1. Responsible for establishing a supply chain that can work in collaboration with SNI with regards to CSR. Supply Chain 2. Improving our suppliers’ capabilities in different aspects in order to help them become outstanding suppliers that can deliver fast services to accommodate Management the Company’s needs while maintain our relationship with suppliers in the long run. Committee 3. Green transportation, green and local purchasing. 1. Responsible for the Company’s promotion of green product manufacturing operations, maintain product safety specifications and normal operation of the IECQ HSPM QC080000 and relevant quality systems. Product Liability 2. Assist the Green Manufacturing Process Committee in responding to issues pertaining to packaging reduction, transportation, energy conservation and so Committee forth. 3. Establish methods of rapid response in accordance with customers’ demands. 1. Responsible for the promotion of the Company’s green product design. Forward-looking 2. Plan for SNI products that will facilitate improvements in the users’ lives and relevant technologies. Innovation Committee 3. Steer the development of new products and stay abreast with trends in the future. 1. Responsible for the integration of the entire company’s environmental protection, safety and health management operations by establishing specific EHS performance indicators to promote relevant management systems for various clean production, EHS, energy, GHG emission and so forth while assisting EHS Committee various committees in the promotion of relevant green activities, green exposition and health-related events. 2. Steer SNI’s efforts and commitment to CSR in order to promote the Company’s image.
Integrity management and sustainable management - safeguarding stakeholders' rights P21 Stakeholder Engagement SNI’s primary stakeholders are identified through stakeholder identification meetings organized by relevant CSR committees. After extensive discussion, we have identified our primary stakeholders to be our investors, customers, suppliers, employees, communities, government agencies and so forth. In order to understand what our stakeholders truly need, SNI has continued to communicate and interact with our stakeholders and established various channels of communication with investors, customers, suppliers, employees, communities, and government agencies. These channels of communication are shown in the table below. In the future, SNI will continue to strengthen the diversity of its communication channels in order to satisfy our stakeholders’ needs.
Demands and Channels of Communication for Different Stakeholders
Stakeholder Channel of Engagement Issues of Concern SNI’s Efforts
• Non-periodic investors’ conference • Company profit Investors Refer to pages 12 and 25 • Annual shareholders’ meeting • Risk management
• Customer service system • Employee rights • Non-periodic visits Customers • Electronic Industry Code of Conduct (EICC) Refer to pages 28~43 • Customer satisfaction survey • Environmental management • Non-periodic audit • Conflict minerals • Non-periodic supplier meetings • Green products (RoHS, WEEE, EuP, Suppliers Refer to pages 44~47 • Non-periodic audits REACH)
• Employee mailbox • Wage and treatment Employees • Periodic labor-management meetings • Benefits Refer to pages 48~62 • Annual conference • Work environment
• Non-periodic community activities • Environmental impact Communities Refer to page 63 • Non-periodic charitable activities • Social contribution
• Non-periodic audit • Degree of legal compliance Government • Non-periodic seminars • Social impact Refer to pages 21, 25, 30, 40 and 52 agencies • Participation in non-periodic activities • Environmental impact
Selection of Material Considerations
SNI takes the material considerations that are of concern to stakeholders very seriously. Through our Corporate Social Responsibility Committee, each subcommittee has conducted tangible aspect analyses to identify the boundaries of impact through the following four steps:
Step 1: Through interactions with our stakeholders, SNI has collected and compiled relevant aspects of consideration and identified Identification the boundary of impact in order to re-assess various feedbck from different stakeholders in our operations. of issues
Based on the “degree of impact on the Company” and “degree of stakeholder concern”, various aspects of consideration Step 2: are scored accordingly. “Degree of impact on the Company” refers to the potential impact that each aspect of consideration may have on SNI’s operations; “degree of stakeholder concern” refers to the extent of potential impact of various aspects Prioritization of consideration may have on SNI’s image and business.
Step 3: Through the Materiality Aspect Matrix (determined based on “degree of impact on the Company” and “degree of Examination of stakeholder concern”), we have selected the tangible aspects of consideration that SNI ought to prioritize. analysis outcome
Step 4: Find out the degree of satisfaction for external organizations on SNI’s efforts in information disclosure in order to develop, Continual implement and assess various action plans and promote continual self-improvement. improvement
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Responsible CSR Committee members have held stakeholder engagement meetings in January 2018 and after extensive discussions, we have identified corresponding stakeholders for each unit and evaluated the selection of suitable methods for further stakeholder engagement (i.e. questionnaire or interview). For NGO, investors, suppliers, contractors, community residents, customers, government agencies and employees, SNI has issued questionnaires as the method of engagement. Based on the extent of “degree of impact on the Company” and “degree of stakeholder concern” for each material aspects of consideration, we have created the following matrix.
High Compliance (Environment) Economic Performance Customer Privacy Employment Training and Education Compliance (Product responsibility)
Child Labor Human Rights Grievance Market Presence Materials Anti-corruption Mechanisms Non-discrimination Occupational Health and Energy Diversity and Equal Opportunity Safety Labor Practices Grievance Mechanisms Labor/Management Relations Anti-Competitive Behavior Grievance Mechanisms for Impacts on Marketing communications Assessment (human rights) Society Effluents and Waste Compliance (Society) Supplier Environmental Assessment Freedom of Association and Collective Forced or Compulsory Labor Bargaining Product and Service Labeling Equal Remuneration for Women and Customer Health and Safety Men Products and Services Degree of impact on the Company Transport Biodiversity Public policies Emissions Supplier Human Rights Indirect Economic Impacts Procurement Practices Evaluation Overall Supplier Labor Practice Water Evaluation Local Security Practices Communities Supplier Assessment for Impacts on Society Environmental Grievance Mechanisms Indigenous Rights Investment
Low High Degree of stakeholder concern
Selection of materiality aspect for SNI’s 2017 CSR Report: based on the results of surveys conducted by each committee, we have performed material aspect identification and boundary establishment to select 25 material aspects for prioritized disclosure in 2017; the President also took part in the process and determined 6 material aspects to bring the total of materiality aspects to 31. These aspects include:
Social aspect Social aspect Social aspect Social aspect Economic aspect Environmental aspect Labor category Human rights category Social category Product liability category
• Economic • Energy • Employment • Non-discrimination • Anti-corruption • Customer Health and Safety Performance • Water • Labor/Management Relations • Freedom of Association and Collective • Anti-Competitive Behavior • Product and Service Labeling • Market Presence • Emissions • Occupational Health and Safety Bargaining • Compliance (social) • Marketing Communications • Procurement • Effluents and Waste • Training and Education • Child Labor • Grievance Mechanisms for • Customer Privacy • Diversity and Equal Opportunity Practices • Products and Services • Forced or Compulsory Labor Impacts on Society • Compliance (Product responsibility) • Equal Remuneration for • Compliance (Environment) • Human Rights Grievance Mechanisms Women and Men • Overall • Labor Practices Grievance Mechanisms
Integrity management and sustainable management - safeguarding stakeholders' rights P23 SNI’s list of material considerations
Boundary Within the Beyond the organization organization Page number for corresponding management Category Aspect of policy consideration Senao Local Suppliers Customers Networks, Inc. communities
Economic Performance √ Refer to pages 12~15, 25, 58 and 62
Economic Market Presence √ Refer to pages 48~53
Procurement Practices √ △ Refer to pages 44~47
Energy √ △ √ Refer to pages 31~33, 40~43
Water √ △ Refer to pages 34
Emissions √ △ √ Refer to pages 31~33, 40~44
Environment Effluents and Waste √ △ Refer to pages 34, 36 and 44
Products and Services √ △ Refer to pages 40 and 41
Compliance √ √ △ √ Refer to page 35
Overall √ Refer to page 35
Employment √ Refer to pages 48~54
Labor/Management Relations √ Refer to page 57
Occupational Health and Safety √ △ Refer to pages 57~62
Training and Education √ △ Refer to pages 55~56
Diversity and Equal Opportunity √ Refer to pages 48~53 Equal Remuneration for Women and √ Refer to pages 52~53 Men Labor practice and decent work Labor Practices Grievance √ △ √ Refer to pages 34, 44, 46 and 57 Mechanisms
Non-discrimination √ △ Refer to pages 20 and 52 Freedom of Association and √ △ Refer to pages 46 and 57 Collective Bargaining
Social Child Labor √ △ Refer to pages 46 and 52 Human rights
Forced or Compulsory Labor √ △ Refer to pages 46 and 52 Human Rights Grievance √ △ √ Refer to pages 20 and 52 Mechanisms
Anti-corruption √ △ Refer to page 20
Anti-Competitive Behavior √ Refer to pages 28~29
Compliance √ Refer to pages 20, 28~29 and 52 Social Grievance Mechanisms for Impacts √ △ Refer to pages 20, 35, 44 and 46 on Society
Customer Health and Safety √ △ Refer to page 40
Product and Service Labeling √ Refer to pages 38~40
Marketing Communications √ Refer to pages 28~29
Customer Privacy √ △ √ Refer to page 40 Product liability
Compliance √ △ Refer to pages 28~29 and 40 Remarks: √ Indicates materiality, with relevant information collected for disclosure. △ Indicates materiality but relevant information has yet to be collected; SNI has planned to disclose relevant information within the next three years. Material aspects relating to customers and local communities shall be disclosed in the format of SNI’s management policies.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Risk Management In light of the many natural disasters and manmade hazards such as nuclear disasters, floods, earthquakes, typhoons and tsunamis that have resulted in the disruption of business operations and losses of tangible/intangible assets, which in turn affected product shipping for the supply chains and customer orders. In order to ensure sustained business operation, SNI has relied on relevant units to take part in relevant risk control mechanisms for site EHS hazards, incidents of crisis, infectious diseases, water resources, corporate finances, government regulations and policies and climate changes with regards to risk management. This is to mitigate the potential losses and impacts on the Company from relevant risks by facilitating due risk controls for crises. SNI has established and published its “Personal Data Protection and Management Regulations” in November 2014. In 2017, the Company has continued to promote the protection of personal data to mitigate the risks and damages from potential information security/data security incidents. In 2016, SNI became accredited to the Authorized Economic Operator (AEO) for secured supply chain. SNI shall continue to promote AEO to manage supply chain security in order to deliver optimal service quality to customers.
Risks of Climate Change
Escalating global warming in recent years has led to more severe climate changes and negative impacts. Commonly occurring natural disasters in Taiwan include torrential rain, flooding, typhoon, earthquake, drought, high PM 2.5 concentration and so forth and these disasters have posed significant threats to the people’s quality of life, well-being and health. These disasters have increased the chances of structural damages to SNI’s plants and equipments, not to mention the dramatic increase in the likelihood of EHS related hazards, which could in turn lead to higher risks for financial losses and increase in operational costs. And as such, the impact of climate changes on the Company in terms of health, finance and safety must be assessed with due prudence. After evaluating the risks and opportunities of climate changes, SNI’s Corporate Social Responsibility Committee has gradually established specific strategies for risks and challenges that the Company may face in the future. In addition, the committee has also explored and studied mechanisms for carbon issue management and will eventually be setting targets and plans for GHG reduction. Facing the risks from climate changes, SNI will continue to focus on the assessment for climate changes while actively striving to achieve the targets for improving our environmental performance to facilitate sound carbon risk management and capitalize new green opportunities. Not only that, the Company is also looking forward to constructing a comprehensive green supply chain system with our upstream suppliers so that we can contribute to the cause of mitigating the impacts of climate change. While climate change will bring about finance, legal affairs, tangible and other risks for SNI, the risks will also be accompanied by relevant opportunities: 1. Financial aspect of climate change A. Financial risks: a. The company may face increased costs from the reparation of facility equipment replacement/repair, relevant EHS costs, losses from production line disruption and other personal injuries/asset damages. b. Climate change may lead to the shortage of specific energy resource, consequently resulting in price increase for relevant raw materials needed in our manufacturing. This in turn could cause the production costs for the entire supply chain and operational costs for SNI to increase. c. Higher green awareness among consumers and customers: as consumers and customers have voiced their wishes for more energy-saving and eco-friendly/low-carbon products, the Company is required to modify its existing processes or replace specific materials in order to meet the expectations of consumers and customers. This would, in turn, lead to an increase in the Company’s costs for production, marketing and PR. d. Climate changes could lead to major disasters and in turn result in substantial damages and losses, which would affect the Company’s operation; the potential impacts could consequently lead to shortage in operational funds and cash flow for the Company, thereby affecting investors’ inclination to invest their resources into the Company. B. Financial opportunities: a. By introducing concepts and designs of green and energy conservation to the Company, it could lead to a reduction in overall operational costs over the long run. b. Investing in energy-conservation and carbon reduction would not only help the Company to reduce its operating expenses but also enhance its positive image, which could improve the chances for SNI to benefit from green opportunities. c. By orienting towards the development of green energy-saving products or technological applications, we will be able to expand the Company’s market and create more opportunities for development in the future by creating more revenues and customers. As SNI pursues sustainable operation and profit, we are also fulfilling our corporate social responsibilities. 2. Legal aspect of climate change A. Legal risks: Legal risks that SNI could face in the future include energy regulations, energy tax regulations, GHG reduction regulations and so forth. These regulations could cause the Company to change its use of raw materials and energy, and thereby leading to increased costs (i.e. adoption of eco-friendly design driven by considerations for product demand). Alternatively, suppliers could face increased costs due to carbon tax on raw materials. The legislation of GHG emission regulations also meant that in order to achieve legal compliance, the Company will have to invest more costs into relevant improvement/acquisition of new equipment. Due to the legal requirements, reduction performance is not an addition and will therefore affect carbon emission trading related systems. B. Legal opportunities: SNI will actively seek information on the contents and directions of regulation revision by the government in order to ensure sufficient time for the Company to prepare in advance and take relevant actions to reduce relevant costs.
Integrity management and sustainable management - safeguarding stakeholders' rights P25 3. Physical aspect of climate change A. Physical risks: a. Non-manmade hazards caused by climate factors can lead to damages/destruction of public infrastructures and facilities or shortage in energy supply and in turn result in devastating impact on the national economy and forced disruption/delay in various business operations and so forth. These incidents could lead to tangible impact on SNI’s operations. b. Temperature changes: even the smallest changes in temperature could cause the change in air-conditioning temperature parameters and in turn lead to increased energy consumption. c. Water resource: Although SNI has already aggressively implemented relevant water conservation measures at its various sites and gradually increased its ratio of water recycling and reuse over the years, due to Taiwan’s unique geological characteristics, the exhaustion of water resources will be an inevitable issue for relevant sectors. d. Floods/rising sea level: Although SNI is not currently affected by the impacts of floods/rising sea level at present, such hazards could damage public infrastructure/disrupt power supply or impact the supply chain by causing production disruption/delay. B. Physical opportunities: SNI’s manufacturing processes place heavy emphasis on the improvement in energy use efficacy and the use of alternative energy (i.e. solar energy) to promote energy conservation and management. Not only that, we have also improved our resource re-utilization and recycling (i.e. water and raw materials) to facilitate the management of resource reuse/recycling, thereby minimizing the impacts of energy resource shortage. 4. Other aspects of climate change A. Other risks: a. Shortage of resources will result in continual growth in fuel and raw material prices, consequently leading to the potential increase in resource costs and in turn cause the management and transportation costs for the entire supply chain to grow. b. Heightened awareness for environmental protection: consumers/customers will demand more energy-saving and eco-friendly products to be manufactured. Apart from being a challenge for SNI, it is also an opportunity for the Company to innovate and cultivate the market with new businesses. B. Other opportunities: a. At present, domestic businesses that have made actual progress and performance in GHG reduction are entitled to apply for incentive for meeting emission performance standards to the competent authority and the credits awarded in this manner can be used to offset the amount of emission in excess for voluntary emission reduction or total emission control when implemented. b. SNI will endeavor to win relevant international green product evaluations and awards as the demand for green product is expected to grow substantially when the government implements relevant subsidies for the purchases of green product in the foreseeable future. SNI’s offering of low energy-consumption products will be the ideal choice for customers and when consumers prefer our products, the Company will be able to expand its market share, increase revenues while establishing its green reputation.
Site risks
The approach of risk management adopted by SNI features management system application as its primary framework. Operating in conjunction with ISO 14001 and OHSAS 18001 systems and PDCA management approach, the Company has conducted risk assessment and quantification through environmental considerations and operation safety analysis to implement compilation and statistics in a systematic manner. Controls and improvement measures we have adopted in accordance with the risk level and characteristics from the environmental aspect and operation safety analysis are as follows: • Low risk processes will focus on relevant legal requirements as the primary guidelines for operation, such as general office operations and standard equipment operations. • For processes of medium and high risk levels, apart from legal requirements, we have also included stricter control measures. • Our higher standards require the specific inclusion of measures for operating equipment and machinery, such as fundamental safety requirements for machines/equipment, establishment of safety standards, various environment pre-warning system detection and so forth. • In the change of machinery/equipment/chemicals, SNI will implement change management risk assessment; high risks processes will require immediate discussion on more in-depth safety protection designs and if the changes required exceed the maximum load of the site environment, the induction will be terminated instead. Once relevant safety designs have been completed to keep the risks involved within the scope of medium-high risk control, the aforementioned change may be introduced as a separate project for re-assessment. The Labor Safety Office is responsible for conducting periodical risk management projects and in order to ensure effective implementation, relevant education and training also serve as an important component of the process. In addition to improving the awareness for adequate protection for technical personnel, the office also hosts various hazard protection trainings and emergency response drills on top of sending our employees to take part in external trainings on a non-periodic basis to assimilate the latest techniques and approaches in EHS operations and attempt to adopt the latest control methods so as to minimize relevant risks at the sites. Apart from just keeping abreast with the sector in terms of risk control, the office is also responsible for introducing relevant concepts of risk control from different industries to our sites.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Financial risks
SNI’s financial risk management policies SNI has adopted a full risk management and control system in order to clearly identify, gauge and control all risks that may relate to the corporation, including market risks, credit risks, fluidity risks and cash flow risks and so forth so that the management can effectively control and gauge the aforementioned risks. In order to ensure effective control and achieve various market risk management targets in order to attain optimal risk positioning, maintaining adequate fluidity while collectively managing all market risks, SNI’s management will take factors such as consideration for the overall economic environment, status of competition and market value risks in order to achieve the aforementioned goals. The objectives of SNI’s financial risk management primarily involve the management of market risks, credit risks and fluidity risks that relate to the Company’s management activities. Based on the Company’s policies and risk preferences, the financial unit is responsible for the identification, measurement and management of the aforementioned risks.
1. Market risks: SNI’s market risks stem primarily from the risks of fluctuations in the fair values or cash flow for specific financial tools caused by changes in market prices. Market risks mainly consist of forex risks, interest risks and other price risks. 2. Credit risk management: credit risk refers to the risk of financial loss on the Company’s part when other parties are unable to fulfill their obligations as stated in relevant contracts. SNI’s credit risks come primarily from relevant business activities (mainly from accounts receivable) and financial activities (mainly from bank deposits and various financial tools). 3. Fluidity risk management: SNI has relied on its cash capital, cash equivalent, high fluidity financial products and bank loans to maintain its financial versatility.
AEO outstanding enterprise and secured supply chain certification
In light of the 911 terrorist attack and the subsequent anti-terrorism measures implemented by the United States, enterprises that are proven to be WCO or equivalent supply chain security standard compliant may be certified to be AEO (Authorized Economic Operator) by the customs office and enjoy the benefits of expedited custom clearance. The AEO security certification system was designed to establish partnership between the customs and enterprises by accelerating the process of cargo clearance without compromising convenience and safety. For companies that have received the AEO certification, apart from enjoying the benefits of requiring minimum paper work reviews and random cargo inspection, they will also be able to benefit from the same privileges in customs clearance in other nations that are members of the framework. In order to strengthen its competitiveness, SNI has begun its promotion to be certified as an AEO back in May 2014 by officially announcing its resolve for its accreditation. In the process of promotion, apart from strengthening relevant operations that the Company has been involved in, we have also enhanced secured transaction and trading with our supply chain partners (upstream and downstream) to bolster our collaboration. On January 27 2016, SNI received its AEO certificate.
▲ Former Keelung Customs Director Sung Ju-Yao presented the certificate to SNI in person on January 27 2016.
Integrity management and sustainable management - safeguarding stakeholders' rights P27 Personal data protection management In November 2014, SNI established and published its “Personal Data Protection Management Regulations” and instructed that all relevant internal official processes and document usage shall adhere to the aforementioned regulations in order to ensure compliance with the standards for proper personal data management. Present, all aspects of personal data operation have been handled in accordance with pertinent regulations and no incidents of violation have taken place in 2017. In the future, the Company will continue to implement relevant management through the following approaches in order to prevent violations of personal data protection regulations:
1. Take part in external conferences and seminars relating to personal data protection regulation revision to ensure specific policies are compliant with pertinent regulations. otal no of ersonal data loss in idents 2. Convey relevant concepts on personal data management to our o of in idents ith ongoing re tifi ation employees through trainings organized by our legal affairs department o of in idents that ha e been re tified (within the Company) or external training organization. o of in idents that ha e yet to be re tified 3. For units (i.e. consumer product distribution related departments) that might have direct access and contact to consumers’ personal data, SNI will conduct more dissemination to foster their awareness for personal data management. 0 Respecting Intellectual Property Rights and Fair Trade SNI values intellectual property rights and fair trade and through appropriate use of its intellectual properties, the Company has contributed to the maintenance of fair trade in the industry. Trade secrets are important assets to corporate operation and as such, we give explicit instructions to all managers and employees to duly protect SNI’s trade secrets and uphold the highest standards for practicing fairness, honesty and integrity so as to help the Company establish its credibility in the society. Relevant requirements of laws and regulations, customers and our stakeholders function as the root of all operations we carry out as a company. As a global citizen, our responsibilities require us to emphasize our compliance with pertinent regulations and continue to reiterate the importance of codes and regulations relating to business ethics, corporate governance, employee conduct and so forth. The company has made an effort to log on to relevant government and regulation websites for data collection in order to carry out compliance assessment operations for relevant legal/ stakeholder requirements. In order to ensure SNI’s compliance to global regulations and prevent any violation, our legal affairs department has organized two “Legal Go!” training courses for our colleagues from the Brand Sales Department and R&D Department in July as a means to help employees clarify any doubt they may have on specific regulations while assisting in the supervision and control of related internal operations. For regultions or intellectual property rights relating to strict compliance and our products, SNI has made a conscious effort to achieve compliance and taken an active stance in conflict resolution. SNI upholds impeccable corporate ethics. We have actively responded to the varying needs and expectations from the government, the general public, our stakeholders and shareholders in different aspects of our operations. Seno is well aware of the fact that strict compliance to the regulations on competition law functions as a central part of our business activities and as such, we shall continue to uphold the integrity of the Company and remain compliant to pertinent laws in all aspects that relate to SNI.
Intellectual Property Performance
In an effort to respect intellectual properties and inspire innovation, SNI has established its legal affairs department, which is responsible for formulating stringent review and application mechanism and reward system to protect the intellectual properties developed and produced by the Company and its production department while encouraging various departments to propose innovative suggestions and approaches relating to products and relevant technologies in order to create an environment that actively promotes innovation. Not only that, SNI has also made aggressive global deployment of patents and as of December 31 2017, SNI has accumulated 40 patents around the world (39 from R.O.C., 0 from the U.S., 1 from China, and 0 from other countries) with 10 patent applications submitted to official organizations for review and approval.
Status of patent applications over the years Unit: No. of patents
10 9 15 6 7 9 6 4 14 9 5 8 7 o of global 6 ertifi ations re ei ed 5 Taiwan:39 4 China:1 3 2 1
2013 2014 2015 2016 2017 ( ear)
o of atent a li ations submitted o of atent a li ations that ha e been to offi ial organi ations for a ro al a ro ed ea h year
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Fair Trade SNI is well aware that strict compliance to the competition law to be a crucial component of the Company’s business activities. And as such, we will continue to work hard and uphold the Company’s integrity while ensuring due compliance to pertinent regulations in various aspects. Thus far, SNI has adhered to pertinent regulations and there were no violations in 2017. In the near future, we will continue to prevent potential violations of anti-fair trade related regulations through the following means: 1. SNI’s legal affairs personnel shall subscribe to relevant e-newsletters on anti-competition laws to stay up to date with the latest trends on competition law around the world. 2. Take part in external conferences and seminars relating to fair trade regulation revision to ensure specific policies are compliant with pertinent regulations. 3. Convey relevant concepts on unfair competition to our employees through trainings organized by our legal affairs department (within the Company) or external training organization. 4. When reviewing relevant business related contracts, the legal affairs department shall scrutinize the contracts for terms and clauses that may involve unfair competition and conduct dissemination on personal data protection for related business units.
o of onfirmed iolations of anti- om etiti e ra ti e fair trade o of iolations of anti- om etiti e ra ti e fair trade that ha e resulted in fines mount of fines for iolation of anti- om etiti e ra ti e fair trade lanations on fines for iolation of anti- om etiti e ra ti e fair trade o of iolations of anti- om etiti e ra ti e fair trade ith ourt senten e ears in hi h ourt senten e has been handed do n for iolations of anti- om etiti e ra ti e fair trade
Product Marketing Communication 0 SNI has complied with pertinent regulations in markets to ensure legitimate distribution of products without violating intellectual property rights belonging to third parties. All our product manufacturing and design have been adequately authorized and licensed by respective owners of relevant intellectual properties to prevent potential allegations for plagiarism or forgery so that we could eliminate the risks of paying substantial compensations for product violation or infringement of rights. Through the following management approaches, our legal affairs department have followed-up, reported and periodically supervised the compliance performance for specific (or relevant) units. By establishing a positive image for our products, we will be able to reassure our customers that they do not have to worry about violation of laws or infringement of rights for SNI products, thereby strengthening the relationship of mutual trust for both parties. Thus far, SNI has adhered to pertinent regulations and there had been no violations in 2017. In the near future, we will continue to prevent potential violations of marketing related regulations through the following means:
1. Our legal affairs personnel will follow-up on relevant cases of domestic and foreign consumer protection regulations in order to keep up with the latest legislation revision trends and practical o of onfirmed rodu t liability iolations insights in Taiwan and abroad. o of rodu t liability iolations that ha e been fined mount of fines for rodu t liability iolations 2. Take part in external conferences and seminars relating to lanations on fines for rodu t liability iolations Consumer Protection Act revision to ensure specific policies are o of rodu t liability iolations ith ourt senten e compliant with pertinent regulations. ears in hi h ourt senten e has been handed do n 3. When reviewing relevant business related contracts, the legal for rodu t liability iolations affairs department shall scrutinize the contracts for terms lanations on follo -u im ro ement measures and clauses that may involve product liability and conduct dissemination on risk management for related business units. 0
▲ On June 29 2017, our first Legal GO! educational seminar was ▲ Our second Legal GO! educational seminar was held later on held at the Nangang Office International Conference Hall, with July 19 2017 at the Nangang Office International Conference contract overview and process as the theme for the event. Hall, with patent overview, process of application and patent index introduction as the theme for the event.
Integrity management and sustainable management - safeguarding stakeholders' rights P29 Ensuring legal compliance Reducing energy resource consumption Completed the Introduction Introduction of Greenhouse of automatic dross recycling Gases Inventory operations: reduced mechanism: by the third production cost increased dross party in 2016 TWD 1.04 million/ recycling rate to year 51.63%
SNI’s promotion of green related issues primarily began in 2016 when we established our inter-departmental platform – Corporate Social Responsibility Committee, which initiated company-wide energy conservation and carbon reduction and introduced green policies in the company’s operations. Not only that, the Committee also proposed and launched the “SNI Green Wireless Plan” (scheduled for 2017-2020) to incorporate green thinking into SNI’s operational strategies and manifested as actions to promote green and sustainable management, thereby ensuring harmonious coexistence with the planet. Not only that, with sustainable use of Earth’s resources as our objective, we shall strive to mitigate the risks of global climate changes and exhaustion of energy resources as we stay abreast with the latest green development trends around the world and create opportunities for new businesses. This will enable us to achieve our green sustainability objectives of “Happy consumers, Safe planet and Assured businesses”.
The “SNI Green Wireless Plan” for 2017~2020 Green manufacturing Green The “SNI Green Wireless Plan” for 2017~2020 will involve the seven functional process accounting Green subcommittees under the Corporate Social Responsibility Committee to implement products relevant promotions in accordance with their functions and responsibilities to initiate Green green-collar cultivation as the starting point and connect to other eight major aspects of Green purchasing wireless green supply chain, green purchasing, green accounting, green manufacturing process, Green plan green packaging, green products and green care to propel the company’s Green packaging Wireless Plan. Green supply chain Green care Green-collar Various action plans promoted by the seven functional subcommittees under the cultivation Corporate Social Responsibility Committee are as follows:
Outcome of action plan promotion in 2017
1. Green-collar cultivation: To indoctrinate environmental education and create a green workplace in order to cultivate green-collar talents.
A. Human Rights and Social Facilitation Committee: a. pril 7, 2017 or t e CSR Celebrity Se inar, t e co ittee in ite air ri t International Corp. C air an Ste en o as a speaker in t e reen Inno ation at o rowt or nterprises. b. No e ber 2 , 2017 SNI s e cation an trainin syste passe t e e al ation con cte by S aoy an, sinc an iaoli istrict Ser ice Center. B. EHS Committee: ly 2 , 2017 ternal see e personnel con cte internal trans er o trainin or personnel relate to SNI s e orts in ener y conser ation an carbon re ction.
2. Green supply chain: To assist the supply chain to reduce energy resource consumption for operations, thereby reducing the carbon and water footprint for products.
Supply Chain Management Committee: a. rc asin ro local s ppliers calc late base on t e percenta e o local p rc ase a o nt o t o total p rc asin a o nt t e percenta e o p rc ases a e by SNI ro local s ppliers in 2017 ca e to o r tar et or 2020 is to increase t e percenta e to . b. S pplier Corporate SNI Responsibility Sel al ation or iss e by SNI in 2017 base on t e responses we a e recei e ro 7 s ppliers, all o o r s ppliers are co pliant wit t e re ire ents or corporate social responsibility as spelle o t in t e ICC. c. In 2017, we incl e rele ant ICC re ire ents in all o r p rc asin contracts an e plicitly note in all o r or ers or all s ppliers to ens re rele ant co pliance. . skin new s ppliers or key aterials to co plete SNI s S pplier ICC Corporate Social Responsibility Sel al ation or we a no new s ppliers in 2017.
3. Green purchasing: To purchase materials and products with relevant eco-friendly labels and gradually establish our green purchasing mechanism.
Supply Chain Management Committee: a. reen p rc asin ec anis SNI s reen p rc asin a o nte to a total o ,2 , 20 in 201 . r reen p rc asin total or 2017 was ,17 , 7. In 201 , SNI was na e as an tstan in reen rc asin ri ate nterprise r ani ation by t e an aoy an epart ent o n iron ental rotection b. S pply c ain aterial Ro S co pliance all o r s pply c ain aterials were Ro S co pliant in 2017.
4. Green accounting: To achieve effective control over the company’s costs and expenses for green investment, thereby enabling the analysis of green investments and improvement of investment efficiency. Senao Networks, Inc. Corporate Social Responsibility Report 2017 A. Internal Control Committee: Co plete t e e ployee o estic b siness tra el in entory between 201 an 2017. B. EHS Committee: SNI s en iron ent protection relate costs an in est ents in 2017 ca e to appro i ately ,1 , SNI i not recei e any en iron ent relate ines or penalties in 2017.
5. Green manufacturing process: Promoted clean production mechanism that facilitated water conservation, energy conservation and waste reduction to reduce production costs.
A. Green Manufacturing Process Committee: a. Intro ction o I ross recyclin ec anis in 2017 increase ross recyclin rate to 1. re ction in pro ction costs t ro recyclin appro i ately ,1 1, 2 . 2. b. Intro ction o a to atic sol erin an ter inatin operations in 2017 re ce pro ction cost by appro i ately 1.0 illion year calc late base on a ont ly pro ction capacity o 1. . B. EHS Committee: a. ece ber 1 , 2017 SNI s in entory or 201 was accre ite to N R s two sta e certi ication. b. e battery recyclin spots establis e at ario s plants a e collecte a total o 7. k s o se batteries in 2017. c. Co plete t e in entory o all re ri erants se by air con itionin syste s at ario s plants or re erence p rposes in t re replace ents. C. Internal Control Committee: a. 2017 paper sa in sol tion Co plete t e electronic rei b rse ent application syste or t e co pany. b. Replace ent o p ysical ser ers wit irt al ser ers y a optin irt al ser er sol tion, we were able to inte rate ltiple p ysical ser ers to re ce t e nee or ser er p rc asin an power cons ption. D. Product Liability Committee: a. Co plete t e esi n o o r i ital pro ct catalo , t ereby re cin t e antity o printe catalo s. b. opte rele ant i ital arketin tools to re ce t e antity o printe aterials. E. Supply Chain Management Committee: a. I ple ente t e policy to t rn o all li ts in t e ware o se rin break ti e. b. li inate t e nee or printe an act rin or ers an aterial iss e or ers in 2017 ecti ely re ce t e eneration o printe aterial iss e or ers an in t rn re ce t e eneration o waste paper. F. Prospective Innovation Committee: Re ce t e antity o p otocopyin paper se or R p rposes e co ittee a e acti e e orts to pro ote t e se o electronic oc ents instea o printin on paper.
6. Green products: To promote philosophy of green product design by integrating our upstream and downstream suppliers in the effort and jointly achieve our green vision.
Prospective Innovation Committee: a. stablis e waste plastic aterial recyclin i enti ication we co plete pro ects in 2017. b. p ate an application or inspection or ario s certi ications t ere a been no iolation o law or pertinent re lations in 2017.
7. Green packaging: reduced packaging weight, developed green packaging material and increased recycling rate for packaging.
A. Prospective Innovation Committee: p lp ol in ol e p lp tray packa in pro ct t at tili e recycle p lp as aterial pro ects co plete in 2017. B. Supply Chain Management Committee: a. stablis ent o non recyclable an recyclable cate ories o packa in aterials an correspon in wei t in t e syste In 2017, we recei e a total o appro i ately 21 tons o packa in aterial, 1 o w ic were recyclable aterials an t e percenta e o recyclable aterials ca e to . b. artitionin tray recyclin In 2017, we recycle , 10 pieces o trays.
8. Green care: To care for SNI’s employees and their families, disadvantaged minorities and communities while promoting relevant green concepts.
A. Human Rights and Social Facilitation Committee: a. ece ber 12, 2017 Recei e t e a e o ccre ite ealt y orkplace ro t e ealt ro otion inistration, inistry o ealt an el are. b. Septe ber , 2017 onate 1 0 o rice to Rein eer C il ren s o e in Nan an . c. an ary 1 , 2017 SNI or ani e its lea arket or 2017. . ay , 2017 SNI s co pany trip. B. EHS Committee: In o r year en party el on ebr ary , 201 , we in ite st ents ro ei in Sc ool in aic n a sc ool or t e is ally i paire to present t eir per or ance an be a part o o r year en celebration. o et er wit o r s ppliers, SNI onate 2 0,000 to t e sc ool as a way to l ill o r corporate social responsibilities. Outcome of action plan promotion in 2017
1. Green-collar cultivation: To indoctrinate environmental education and create a green workplace in order to cultivate green-collar talents.
A. Human Rights and Social Facilitation Committee: a. pril 7, 2017 or t e CSR Celebrity Se inar, t e co ittee in ite air ri t International Corp. C air an Ste en o as a speaker in t e reen Inno ation at o rowt or nterprises. b. No e ber 2 , 2017 SNI s e cation an trainin syste passe t e e al ation con cte by S aoy an, sinc an iaoli istrict Ser ice Center. B. EHS Committee: ly 2 , 2017 ternal see e personnel con cte internal trans er o trainin or personnel relate to SNI s e orts in ener y conser ation an carbon re ction.
2. Green supply chain: To assist the supply chain to reduce energy resource consumption for operations, thereby reducing the carbon and water footprint for products.
Supply Chain Management Committee: a. rc asin ro local s ppliers calc late base on t e percenta e o local p rc ase a o nt o t o total p rc asin a o nt t e percenta e o p rc ases a e by SNI ro local s ppliers in 2017 ca e to o r tar et or 2020 is to increase t e percenta e to . b. S pplier Corporate SNI Responsibility Sel al ation or iss e by SNI in 2017 base on t e responses we a e recei e ro 7 s ppliers, all o o r s ppliers are co pliant wit t e re ire ents or corporate social responsibility as spelle o t in t e ICC. c. In 2017, we incl e rele ant ICC re ire ents in all o r p rc asin contracts an e plicitly note in all o r or ers or all s ppliers to ens re rele ant co pliance. . skin new s ppliers or key aterials to co plete SNI s S pplier ICC Corporate Social Responsibility Sel al ation or we a no new s ppliers in 2017.
3. Green purchasing: To purchase materials and products with relevant eco-friendly labels and gradually establish our green purchasing mechanism.
Supply Chain Management Committee: a. reen p rc asin ec anis SNI s reen p rc asin a o nte to a total o ,2 , 20 in 201 . r reen p rc asin total or 2017 was ,17 , 7. In 201 , SNI was na e as an tstan in reen rc asin ri ate nterprise r ani ation by t e an aoy an epart ent o n iron ental rotection b. S pply c ain aterial Ro S co pliance all o r s pply c ain aterials were Ro S co pliant in 2017.
4. Green accounting: To achieve effective control over the company’s costs and expenses for green investment, thereby enabling the analysis of green investments and improvement of investment efficiency.
A. Internal Control Committee: Co plete t e e ployee o estic b siness tra el in entory between 201 an 2017. B. EHS Committee: SNI s en iron ent protection relate costs an in est ents in 2017 ca e to appro i ately ,1 , SNI i not recei e any en iron ent relate ines or penalties in 2017.
5. Green manufacturing process: Promoted clean production mechanism that facilitated water conservation, energy conservation and waste reduction to reduce production costs.
A. Green Manufacturing Process Committee: a. Intro ction o I ross recyclin ec anis in 2017 increase ross recyclin rate to 1. re ction in pro ction costs t ro recyclin appro i ately ,1 1, 2 . 2. b. Intro ction o a to atic sol erin an ter inatin operations in 2017 re ce pro ction cost by appro i ately 1.0 illion year calc late base on a ont ly pro ction capacity o 1. . B. EHS Committee: a. ece ber 1 , 2017 SNI s in entory or 201 was accre ite to N R s two sta e certi ication. b. e battery recyclin spots establis e at ario s plants a e collecte a total o 7. k s o se batteries in 2017. c. Co plete t e in entory o all re ri erants se by air con itionin syste s at ario s plants or re erence p rposes in t re replace ents. C. Internal Control Committee: a. 2017 paper sa in sol tion Co plete t e electronic rei b rse ent application syste or t e co pany. b. Replace ent o p ysical ser ers wit irt al ser ers y a optin irt al ser er sol tion, we were able to inte rate ltiple p ysical ser ers to re ce t e nee or ser er p rc asin an power cons ption. D. Product Liability Committee: a. Co plete t e esi n o o r i ital pro ct catalo , t ereby re cin t e antity o printe catalo s. b. opte rele ant i ital arketin tools to re ce t e antity o printe aterials. E. Supply Chain Management Committee: a. I ple ente t e policy to t rn o all li ts in t e ware o se rin break ti e. b. li inate t e nee or printe an act rin or ers an aterial iss e or ers in 2017 ecti ely re ce t e eneration o printe aterial iss e or ers an in t rn re ce t e eneration o waste paper. F. Prospective Innovation Committee: Re ce t e antity o p otocopyin paper se or R p rposes e co ittee a e acti e e orts to pro ote t e se o electronic oc ents instea o printin on paper.
6. Green products: To promote philosophy of green product design by integrating our upstream and downstream suppliers in the effort and jointly achieve our green vision.
Prospective Innovation Committee: a. stablis e waste plastic aterial recyclin i enti ication we co plete pro ects in 2017. b. p ate an application or inspection or ario s certi ications t ere a been no iolation o law or pertinent re lations in 2017.
7. Green packaging: reduced packaging weight, developed green packaging material and increased recycling rate for packaging.
A. Prospective Innovation Committee: p lp ol in ol e p lp tray packa in pro ct t at tili e recycle p lp as aterial pro ects co plete in 2017. B. Supply Chain Management Committee: a. stablis ent o non recyclable an recyclable cate ories o packa in aterials an correspon in wei t in t e syste In 2017, we recei e a total o appro i ately 21 tons o packa in aterial, 1 o w ic were recyclable aterials an t e percenta e o recyclable aterials ca e to . b. artitionin tray recyclin In 2017, we recycle , 10 pieces o trays.
8. Green care: To care for SNI’s employees and their families, disadvantaged minorities and communities while promoting relevant green concepts.
A. Human Rights and Social Facilitation Committee: a. ece ber 12, 2017 Recei e t e a e o ccre ite ealt y orkplace ro t e ealt ro otion inistration, inistry o ealt an el are. b. Septe ber , 2017 onate 1 0 o rice to Rein eer C il ren s o e in Nan an . c. an ary 1 , 2017 SNI or ani e its lea arket or 2017. . ay , 2017 SNI s co pany trip. B. EHS Committee: In o r year en party el on ebr ary , 201 , we in ite st ents ro ei in Sc ool in aic n a sc ool or t e is ally i paire to present t eir per or ance an be a part o o r year en celebration. o et er wit o r s ppliers, SNI onate 2 0,000 to t e sc ool as a way to l ill o r corporate social responsibilities.
Climate Change Management (Carbon Management) With the issue of global climate warming continuing to gather more attention, climate change has impacted businesses in different ways, including risks from increased operational costs, pertinent national regulations, customers’ demand for GHG reduction, threats to production due to extreme climates and so forth. Carbon management has become the predominant international green trend and it has changed the preferred model of manifestation for corporate operation performance. SNI has adopted models of sustainable thinking for our management of carbon management blueprint. Through our Corporate Social Responsibility Committee, we have drafted our Green Wireless Plan as our action plan for carbon reduction. Each year, the committee will evaluate the status of action plan achievement in the hopes of being thorough with our carbon reduction and management right from the source and that through the analysis of climate change risks and opportunities, GHG emission inventory management, GHG reduction promotion, green supply chain establishment and green requirements, we will be able to minimize the impact of climate change on the company and maintain our leading edge in the area of environment protection.
Ensuring legal compliance Reducing energy resource consumption P31 GHG Inventory Disclosure
SNI has been working to have an adequate grasp on pertinent domestic and foreign regulations relating to energy and GHG. Presently, the GHG Emission Declaration Management Procedure and Applicable Targets promulgated by the EPA does not apply to SNI but in order to satisfy environmental protection needs, starting from 2016, the company has been conducting its annual GHG organizational inventory in accordance with the ISO 14064-1 GHG Management System Standard. The inventory covers our Hwa Ya Plants (Plants 1 and 2) and in December 2017, we commissioned a third party to perform the verification and received our external verification certificate to ensure data integrity and credibility. Through inventories and verifications, we were not only able to achieve accurate grasp on the company’s emission but also motivate relevant departments to explore potential space and opportunities for reduction and in turn formulate action plans for reduction. This will help to improve SNI’s emission performance over the years. SNI’s GHG inventory is performed based on the 7 greenhouse gases as defined by ISO 14064- 1 and the status of activities carried out at various plantss, our products and services and so forth.
These GHG include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons
(HFCs), perfluorinated compounds (PFCs), sulfur hexafluoride (SF6), nitrogen trifluoride (NF3) and so forth. Analysis of our GHG emission showed that our primary source of emission is attributed to the purchase of external power. Relevant carbon reduction and energy conservation targets for our primary emission sources have been incorporated into SNI’s corporate management guidelines and strategic objectives. Not only that, the status of achievement for all energy conservation and carbon reduction solutions have been entrusted to our Corporate Social Responsibility Committee for relevant promotion and review. SNI intends to
reduce CO2 emissions by 100 metric tons between 2017~2021 (based on the figures from 2015).
GHG inventory Unit: ton CO2e/year
Scope Emission source 2015 2016 Source of direct emission includes all sources of GHG emission owned or controlled at our Scope1 plants (i.e., stationary combustion source, mobile combustion source, process emission 290.48 283.37 and fugitive emission) Scope2 SNI’s primary source of indirect emission comes from externally purchased power 3889.01 3752.19 Other emissions (raw material transportation, supplier production, employee travels, Scope3 waste handling and so forth are not included in the scope of the inventory; only qualitative -- -- sources, not quantitative sources have been included) Total emission 4179.49 4035.56 Note: 1. Scope 3 emission information has yet to be included in SNI’s emission report. The company will strive to gather relevant data for Scope 3 emission by starting with the disclosure of emission from employees’ business travels and it shall be the target of GHG inventory optimization for SNI in the future. 2. No inventory has been made in 2017; relevant data shall be disclosed in our report for 2018. GHG eco-efficiency Annual GHG emission run-chart nit ton e year
4,179.49 4,035.56 Item \Year 2015 2016 9 8 GHG emission: ton CO2e/year 4,179.49 4035.56 7 1814.58 Consolidated operating revenue (in TWD 6 7,584,018 6,636,546 1,000) 5 GHG eco-efficiency(in TWD 1,000)/ton 4 1814.58 1644.52 1644.52 CO2e/year 3 2015 2016 ear 2
Note: GHG eco-efficiency=Total operating revenue/total GHG emission for the year. 1 emission ton e year eco e iciency
GHG Scope 3 Inventory
Our GHG Scope 3 emission information has yet to be incorporated into SNI’s official GHG inventory and emission report. The company has been hard at work to establish inventory data for Scope 3 emission by following the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by World Business Council for Sustainable Development (WBCSD) and World Resource Institute (WRI) in 2011. In 2017, SNI has begun Scope 3 GHG emission inventory by disclosing the emission from employee business travels in Taiwan. The company will continue work diligently on implementing and disclosing other Scope 3 related items in the future. SNI has inventoried domestic business travels by its employees between 2013 and 2017 by referring to the information provided at EPA’s Low Carbon and Sustainable Homeland website under the section on Green Transportation. Based on the outcome of studies by ITRI, SNI’s carbon
emission factor for vehicles with gasoline fueled engine came to 256.5g CO2e/km; our carbon emission factor for motorcycles with gasoline fueled
engine came to 112.4g CO2e/km. With our gasoline GHG emission factor at 2.36Kg CO2e/L, we were able to perform the conversion to CO2 emission. In addition, we will also use the gasoline consumption factor of 0.109L/km for vehicles and 0.048L/km for motorcycles to derive our total gasoline consumption. We also referred to the Energy Statistics Handbook 2016 published by the MOEA and use the conversion formula of motor gasoline 1L = =7800Kcal=0.0326196GJ to calculate our total energy consumption from gasoline.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Statistical chart of domestic employee business trips between 2013 - 2017
46941.00 87410.80 120447.80 162143.00 188367.30 22445.01 28511.68 39588.01 44197.07 45681.84 52935.31 67222.76 93338.47 104185.00 107669.49 20 18 1490.12 16 1441.69 14 1291.35 12 930.04 10 8 732.15 6 4 2 0
2013 2014 2015 2016 2017 （Year）
Total business trip distance Total gasoline consumption in L Total GHG emission in KgCO2e in km(all vehicles) Total gasoline consumption in GJ (0.0326196GJ/L)
Energy management and intensity analysis
On top of the limited energy resources and imbalanced distribution of such resources, climate change in recent years have led to many natural disasters, thereby making the availability of natural resources even more scarce. With environmental impacts steadily worsening and limited supply of new energy and renewable energy, the costs of power generation have been growing steadily. The truth is, the government has significantly increased the electricity prices in 2012 and 2013, thereby leading to major impact on various domestic industries and the livelihood of the general populace. On top of that, the Ministry of Economic Affairs has promulgated its “Regulations Governing Energy Users on the Establishment of Energy Conservation Targets and Implementation Plans” on August 1 2014, requiring energy users with contracted power consumption exceeding 800kw per year to achieve no less than 1% in “annual energy conservation rate” and “average annual energy conservation rate” between 2015~2019. Energy conservation has become an important topic for all. SNI has been promoting relevant energy conservation measures and improving equipment energy usage efficiency, including: 1. Turning off lights in the office and warehouse during lunch break hours; turning off power when the conference room is no longer in use and installing scheduled activation and deactivation for lights in the public areas. 2. For our air-conditioning systems and water chillers, we have been using eco-friendly refrigerants and perform regular maintenance by cleaning and replacing the filters to improve the air-conditioning systems’ efficacy while reducing energy consumption. 3. Machinery equipment: power is turned off for machinery that are idle in standby for extended period of time; periodical maintenance is carried out to keep all equipment and machinery in normal operation to improve equipment utilization rate while reducing power consumption. 4. Replaced light fixtures with LED lamps at the plants to replace energy-consuming light sources with energy-saving alternatives. 5. Replacement of physical servers with virtual servers: By adopting virtual server solution, we were able to integrate multiple physical servers to reduce the need for server purchasing and power consumption. 6. Adopting online video conferencing software: The software effectively reduces the frequency of business trips taken by employees between
plants and international business trips, thereby reducing CO2 emission generated from the process of transportation. 7. Internal transfer of training course provided by external training seeded personnel for SNI’s personnel involved in energy conservation and carbon reduction. By improving our energy usage efficiency through various energy-saving measures, in addition to meeting relevant government requirements, we will be able to prevent unwanted waste of energy resources, reduce energy consumption and decrease our CO2 emission, thereby achieving a win-win situation by contributing to the cause of mitigating global warming and reducing the company’s operating costs at the same time.
Power consumption (GJ) per production quantity (unit) Total annual power consumption run-chart (GJ) at the Hwa Ya Plants from 2014 through 2017 23,909.41 26,471.69 25,526.62 26,280.40 0.0074 0.0082 0.0091 0.0072
321.99 258.63 266.50 259.99
2014 2015 2016 2017 （ ear） 2014 2015 2016 2017 （ ear） o er consumption roduction uantity unit otal annual po er o er eco e iciency consumption
Note: Production quantity (unit) power consumption = Hwa Ya Plant (plant Note: Power eco-efficiency = Total operating revenue /total annual power 1 and 2) power consumption/production quantity (unit). Excluding our consumption (only for the power consumption for Hwa Ya Plants Neihu, Zhubei and Nangang Research Centers. (plant 1 and 2)). Excluding our Neihu, Zhubei and Nangang Research Centers.
Ensuring legal compliance Reducing energy resource consumption P33 Water Resource Management Due to the impact of climate change around the world, water resource shortage will soon be an inevitable problem for mankind. Natural disasters have frequently devastated the environment and in Taiwan’s case, we have often encountered droughts and torrential rains. These issues have made proper water resource management all the more important. Although the manufacturing of communication products requires relatively less quantity of water, the lives of our employees are still susceptible to the impacts of water resource shortage. SNI shall resort to innovative and sustainable ways to protect water resources, reduce day-to-day water consumption by employees and facilitate water resource recycling and reuse to mitigate the potential risks of water resource shortage. SNI uses tap water as the source of its water resources. The company does not use groundwater. In 2017, the total water consumption for Hwa Ya Plant No.1 and 2 (excluding Neihu, Zhubei and Nangang Research Centers) came to 44,228 metric tons; most of the water used has been for domestic water use and equipment washing. We have installed a recycling device for water discharged by our RO potable water system at Hwa Ya Plant No.1 and the recycled water made up approximately 4.92% of our total water consumption. In other words, we recycled approximately 2,177 metric tons of water, mostly to be used for the water chiller heat exchange to reduce our water resource consumption. SNI has continued to promote and advocate relevant water conservation measures, improved water efficiency for relevant equipment and water recycling efficiency, such as: 1. Posting water conservation slogans on the premises to remind all employees to cultivate the right concept for water conservation and the habit of duly turning off faucets after use. 2. Management of domestic water use by establishing specific reporting mechanisms; in the event of water leakage, employees should report immediately for repair/maintenance to be performed. In addition, we have also installed various water-saving devices and facilities, such as water savers on faucets to reduce water flow. 3. Potable water: We performed routine equipment inspection and maintenance and replaced filters according to schedule to improve the water efficiency for our systems. 4. In 2015, we installed specific equipment to recycle the water discharged by our RO potable water system to be used as the water for water chiller heat exchange. Through various water conservation measures, we have improved our water efficiency and eliminated unwanted waste of water resources. In the future, SNI will continue to promote the adoption of equipment with water conservation labels to reduce water resource consumption and introduce rainwater recycling facilities to increase water resource recycling, which will in turn help to reduce the company’s overall water consumption and operating costs.
Statistics of water consumption and production Total annual water consumption run-chart quantity (unit) at the Hwa Ya Plant 39,274.81 37,375.41 39,776.00 44,228.00 0.0121 0.0115 0.0141 0.0122 191.33 166.85 157,.45 202.91
2014 2015 2016 2017 （Year） 2014 2015 2016 2017 （ ear） Total water Water consumption eco-efficiency ater consumption ton roduction uantity unit consumption (M3) (in TWD 1,000)/(M3)
Note: Production quantity (unit) water consumption = Hwa Ya Plant (plant Note: Water consumption eco-efficiency = Total operating revenue /total annual 1 and 2) water consumption/production quantity (unit). Excluding our water consumption (only for the water consumption for the Hwa Ya Plants Neihu, Zhubei and Nangang Research Centers. (plant 1 and 2)). Excluding our Neihu, Zhubei and Nangang Research Centers. Wastewater Treatment
SNI generates no effluent from its processes and the pipeline of our domestic wastewater is connected to Hwa Ya Park Administration Center Wastewater Treatment Plant for collective treatment. The Environmental Engineering Section of the Administration Center is responsible for carrying out routine sample inspection of wastewater (in terms of volume) and concentration of SS, COD and pH, all of which must be compliant with the acceptance standard for the wastewater treatment plant. At the plants, plant affair personnel are responsible for taking meter readings on a daily basis to monitor the status of wastewater and keep an eye out for any changes in wastewater in order to remain compliant with the acceptance standard for the wastewater treatment plant. With clean production (waste reduction, recycling and reuse) as our objective, SNI has been actively reduce wastewater generation, recycling and reuse in order to make the most out of our water resources. With regards to wastewater recycling and reuse, by recycling the water discharged by our RO potable water system to be used for water chiller heat exchange, we have effectively reduced our wastewater discharge and lowered the company’s impact on the environment with our water usage and wastewater generation. Total wastewater volume (M3)
Item\Year 2014 2015 2016 2017 Note: Our domestic wastewater generated at the Hwa Ya Plant includes Hwa Ya Plant 33,241 23,169 21,431 23,961 that from Senao International. However, due to the difficulty involved in quantification, the generation of domestic wastewater will be attributed solely to Senao Networks instead.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Environmental Risk Evaluation and Communication Here at SNI, we take the impact of our operations on the environment very seriously, and as such, we have implemented comprehensive risk assessment for the environment and assigned corresponding risk levels. We have adopted the Plan-Do-Check-Act Cycle (PDCA) to ensure continual improvement through monitoring and auditing to adequately and effectively identify relevant risks and carry out preventive measures along with routine reviews on the effectiveness of our implementations and audits on legal compliance. We have also strengthen our communication channels and mechanisms to achieve adequate risk management. Environmental Grievance Mechanism SNI has established its EHS consultation and communication procedure as the company’s approach to managing its internal and external communication/consultations by offering relevant EHS information to our employees and stakeholders. Contents of our consultation and communication include: stakeholder demands, competent government agencies, anomaly and proposal improvement mechanism, management system requirements, reporting, meeting agendas (records), consultation form or data, doubts on EHS regulation compliance, petitions and grievances, emergency EHS incidents, EHS requirements for stakeholders, such as contractors and customers. After relevant EHS and energy information or specific demands have been received by relevant units, they shall be relayed to the Labor Safety Office for archival and handling by informing or calling upon relevant units for coordination/communication in order to establish relevant counterstrategies before countersigning with relevant units for implementation. In the future, we will continue to follow this procedure in our consultation and communication with stakeholders in order to better understand their needs. We have received 4 environmental grievances in 2017, described as below: We also received 4 employee suggestions (1 proposal for resting area improvement, 2 proposals for benefit improvement and 1 proposal for environment improvement) Communication with Local Residents In order to maintain and stay on friendly terms with local residents in communities neighboring our plants, active communication has always been the best approach to hear the voices and needs of local residents. SNI has made an effort to routinely take part in the Hwa Ya Park Environment Quality Monitoring Committee to record and report the status of environmental audit and monitoring within the park. SNI takes the protection of local environment very seriously and has maintained relevant communications through various channels in order to blend into local communities. At present, none of our plants is situated in designated areas of ecological preservation or protected environments with rich biodiversity, nor has endangered species been found near our plants. All exhaust, wastewater and waste generated through the company’s operations have been treated in accordance with pertinent government regulations to meet relevant acceptance standards prior to emission. They cause no impact on the environment. Chemical Management With regards to chemical management, we adhere to the spirit of source management and have thus established our chemical operation management and change management system in order to have concrete control over the risks of chemical purchasing and usage in the hopes of staying legally compliant while preventing the incidence of any occupational disasters or diseases as inadequate chemical management could potentially impact employees’ health, occupational safety and the environment. SNI has continued to promote chemical management solutions in conjunction with relevant promotions by the Ministry of Labor. By establishing and submitting our list of chemicals used at our plants, we have contributed to the construction of source management at its base. For the introduction of new chemicals, we have established stringent review measures and incoming- inspection standards. New chemicals may only be approved for usage after they are proven to be compliant with the plant’s regulations. Occupational hazards are usually attributed to inadequate training for employees, making them ill-equipped to be aware of the potential hazards of chemicals. SNI has adopted relevant safety and protective measures coupled with personnel training and methods of thorough self-inspection to facilitate proper management of hazardous substances. At our plants, we have implemented routine inspection of the operating environment and installed monitoring systems to achieve real-time monitoring of exposure status for operators and environmental concentration. The data collected can also be analyzed and serve as the basis to establish specific levels of health monitoring. In 2017, SNI had no incidents of chemical leakage, occupational safety hazard or disruption of operation due to protests that have impacted the environment.
Expense Item Items of environmental costs Statistics of Environmental Protection (in TWD ) Expenses and Investments for 2017 1 Cost of outsourced greening and sanitation 156,000 2 Cost of sanitation facility maintenance (sanitation engineering fee) 2,927,000 In order to effectively mitigate the environmental impacts of our corporate 3 Cost of floor waxing and cleaning 139,965 operations, SNI has established dedicated units of maintenance for 4 Cost of environmental disinfection 75,003 various pollution handling measures and equipment along with equipment 5 Cost of water fountain inspection 85,000 maintenance plans and relevant budgets to keep various measures and equipment of pollution handling in effective working order. We have also 6 Cost of sanitation product purchases (i.e., toilet paper, hand wash...) 614,427 installed monitoring systems to monitor the operation of various treatment 7 Cost of potted plant rental 173,500 equipment in real-time so that appropriate adjustments can be made when 8 Cost of domestic wastewater treatment 297,441 needed to prevent equipment anomaly and prevent pollutants from affecting 9 Cost of air pollution prevent equipment maintenance and servicing 73,175 the surrounding environment. Cost for outsourced waste handling (including the transportation and 10 597,874 SNI has also setup dedicated units to gather relevant information on handling of domestic waste and hazardous industrial waste) the amendments of environmental protection regulations and review the Cost of environmental monitoring (including various inspections for 11 20,500 company’s various pollution handling measures and facilities to ensure their air quality, wastewater, waste and so forth) compliance with pertinent regulations and standards. The unit will also make Cost of environmental protection certification review and relevant adjustments or adopt new measures/equipment when necessary 12 certifications: various association membership fees and 0 to ensure compliance with pertinent environmental laws. In 2017, our miscellaneous fees environmental protection related expenses came to TWD 5,168,985. 13 Cost of environmental related fines 0 Environmental protection fines and penalties: SNI had no environmental 14 Cost of energy-saving modifications investment 5,500 protection related to fines or penalties in 2017. 15 Cost of relevant training and education 3,600 Total 5,168,985 Ensuring legal compliance Reducing energy resource consumption P35 Material and Energy Resource Flow Chart When it comes to material and energy consumption, SNI has been working towards the goals of “recyclable, low pollution, zero hazards, resource- saving, energy-saving and extended lifecycle”. SNI has compiled the following Material and Energy Resource Flow Chart in 2017 by collecting relevant material data from different regions to be used for material and resource consumption statistical analysis, which will strengthen the company’s environmental management system further while serving as key reference indicators for the company’s green manufacturing processes.
Input Output
PCB input : 8.2185 million pcs Product design Wastewater discharge volume Wastewater volume : 23,961 tons Suspension solid (SS) 1.20 tonsNote 2 Chemical oxygen demand (COD) 3.73 tonsNote 2 Note 1: Raw material refers to the quantity of materials used Raw materialsNote 1 for production. Air emissions Note 2: The calculation for SS and COD have been made Antenna 5.227 million pcs Purchasing GHG emission quantity : 4035.56 tons, based on the figures taken from routine inspection Note 3 reports multiplied by the volume of wastewater Packaging materials 58.7872 million pcs CO2 equivalent discharged. Plastic parts 7.8798 million pcs Sulfur oxides : 0 tonsNote 4 Note 3: GHG emission volume has been taken from the Hardware 63.5853 million pcs Nitrogen oxides : 0 tonsNote 4 inventory performed in 2016. Note 4: As SNI is not categorized under the industry for air Quantity of waste generated pollution control by the EPA, we have not monitored our Sox and NOx emission data. Note 5 Manufacturing Total waste generated : 562.2 tons Note 5: Total waste quantity: this includes general (including Water resources Quantity of waste recycled and reused : 445.48 tonsNote 6 recycled) waste and hazardous waste. Water consumption : 44,228 tons Final quantity of solid waste handled : 112.4 tonsNote 7 Note 6: Quantity of waste recycled and reused: this includes resource waste, recyclable process waste and so Water recycling rate for all Note 8 Final quantity of liquid waste handled : 4.32 tons forth. plants : 4.92% Note 7: Total quantity of solid waste handled: total quantity of Quantity of product distributed non-recyclable solid waste. Distribution Wireless network system products : 293.35 million units Note 8: Total volume of liquid waste handled: total quantity of Energy Wired network system products : 647,600 units non-hazardous effluents from cleaning reflow ovens. Note 9: This includes the revenues from the sales of network Externally purchased power : Wireless communication system products : 30,500 units security monitoring system products, accessories Note 9 26,280.4 GJ Other : 1.303 million units and relevant maintenance.
Resource reduction and reuse Here at SNI, we believe that through source improvement and green design and production, we will be able to make a difference in terms of reducing resource consumption. In addition, through recycling and reuse of various materials and friendly product development, we hope to mitigate the direct environmental impact from mineral harvesting and the issue of waste handling at the back-end as a way to respond to the trends of sustainable development and resource recycling around the world.
Waste Resource Management Pursuant to the Basel Convention and pertinent environmental protection laws, SNI has produced no waste forbidden by the Basel Convention. Our priority for waste handling considerations is source reduction, classification, reuse and resource recycling. Should any of the aforementioned approaches for waste handling be not applicable for the waste, we would then opt for incineration. There are more than 10 (in fact over 20) ways of waste classification available and after appropriate recycling and classification, they are sorted into waste that need to be processed, waste that can be recycled and resource waste. All waste is handled and processed according to pertinent regulations. Waste is primarily separated into solid and liquid waste. For liquid waste, the source is mainly from the non-hazardous solvents used in the cleaning of reflow ovens and these solutions have been independently collected and stored during the cleaning process. As for the solid waste, it basically consists of domestic waste, resource waste, mixed hardware scraps, waste plastic packaging and paper cartons. Solid waste is sorted, with relevant resources recycled before they are cleared and processed by qualified waste handling service providers. We have set our waste recycling and reuse rate at over 75%. Waste reduction optimization campaigns launched by SNI in 2017: 1. Completed our electronic purchase request system to effectively reduce the amount of paper waste created for purchase request forms. In the future, we will continue to promote paper reduction for our accounting operations. 2. Completed our manufacturing order system to effectively reduce the amount of paper waste created for printed manufacturing orders. 3. Completed the setup of our used battery collection spots: We have collected a total of 7.56 kgs used batteries in 2017. 4. Completed our digital product catalog to reduce the quantity of printed catalogs. We will continue to promote relevant implementations in the future. 5. Utilized digital marketing tools to reduce the quantity of printed materials. We will continue to promote relevant implementations in the future. 6. Reduction of paper for photocopying purposes We have promoted the use of electronic documents as much as possible to reduce the amount of printing that needs to be done and will continue to promote relevant implementations in the future. 7. Introduction of DIP dross recycling mechanism: increased dross recycling rate to 51.63%; reduction in production costs through recycling: approximately TWD $6,191,625.92. 8. Introduction of automatic soldering and terminating operations: reduced production cost by approximately TWD 1.04 million/year (calculated based on a monthly production capacity of 1.5KK).
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Liquid Waste Generation at Hwa Ya Plants between 2015~2017 unit: in tons
Item\Year 2015 2016 2017
Total volume of liquid 1.82 0 4.32 waste handled Note: Excluding our Neihu, Zhubei and Nangang Research Centers.
Waste Generation at Hwa Ya Plants between 2015~2017 unit: in tons
Item\Year 2015 2016 2017
Total 444.40 410.33 562.20 ▲ Completed our digital ▲ Completed our digital Waste that requires 89.98 87.50 116.72 marketing tools and product catalog to reduce incineration reduced the quantity of the quantity of printed Recyclable waste 17.26 13.80 18.07 printed copies copies Resource waste 337.16 309.03 427.41 Recycling and reuse rate 79.75% 78.68% 79.24% Note: Excluding our Neihu, Zhubei and Nangang Research Centers.
▲ Introduction of DIP dross recycling mechanism: increased dross ▲ Introduction of automatic soldering and terminating operations: recycling rate to 51.63%; reduction in production costs through reduced production cost by approximately TWD 1.04 million/year recycling: approximately TWD $6,191,625.92. (calculated based on a monthly production capacity of 1.5KK).
Air pollution prevention Between 1979 and 1992, the ozone layer concentration in the Antarctic region has reduced by more than 50% compared to its original level. The ozone layer is capable of absorbing ultraviolet radiation and significantly reducing the intensity of ultraviolet light that reaches the earth’s surface. If we don’t do anything to protect our ozone layer, the ultraviolet radiation in the sunlight could cause a great deal of harm to all living creatures on earth, not to mention the potential increase in the incidence of skin cancer for mankind. Thanks to the efforts and hard work of scientists, we have now come to the realization that chlorofluorocarbons (CFCs)are the biggest culprit for ozone layer destruction, and the awareness has eventually led to the signing of the Montreal Protocol, which aims to protect the ozone layer by phasing out the production of CFCs effective from January 1, 1996 in order to save mankind from a potential catastrophe. In our selection of refrigerants, we have given due considerations for environmental friendly products and specifically chose eco-friendly refrigerants that contained no substances that could deplete the ozone layer. SNI has had no emissions of such substances. SNI’s air quality management strategy requires that all pollutants to be properly treated prior to their emission in order to maintain environmental quality. Our exhaust fumes primarily come from our SMT and DIP soldering and to ensure effective pollution control, we have to reduce the consumption of raw materials in our processes while implementing relevant pollutant discharge measures and control – in other words, management at the source; we have also been improving the effectiveness of our exhaust treatment equipment to ensure effective control of exhaust discharge. Although SNI is not categorized under the industry for air pollution control by the EPA, in an effort to maintain air quality, we have installed active carbon absorption tower at the Hwa Ya Plant No.1 so that exhausts generated during our SMT and DIP soldering processes are discharged through the local exhaust ventilation devices to be collectively treated by the active carbon absorption tower before they are released into the air. The active carbon absorption tower is routinely serviced on a yearly basis to maintain its operational efficacy so as to mitigate our impact on the environment.
Ensuring legal compliance Reducing energy resource consumption P37 Development of eco-friendly products Promotion of green sustainable value chain
Product Named as an 90% received the customer CEDIA Best of Show Outstanding satisfaction and Commercial Green Purchase Integrator BEST Enterprise rate Awards
OrganizationIn order to connect to the world and contribute to the cause of environmental protection, SNI has been committed to the manufacturing of eco-friendly products and given the premise of not compromising product performance and reliability, we have endeavored to cut down on the use of raw materials for our products and opted for raw materials that are compliant with pertinent green and environmental protection regulations while refraining from using conflict minerals in our production so as to stay compliant with relevant environmental regulations around the world. On top of that, we have dedicated ourselves to minimizing our emission of GHG in order to mitigate the impacts of climate changes by incorporating energy-saving features in our product designs through the use of parts/components that operate on low-energy consumption models. In addition, we have also been promoting energy-saving measures and improving equipment efficiency to reduce their carbon emission during our product lifecycles. With regards to product packaging, in addition to ensuring adequate protection for products, we have also given thoughts to green design philosophies that involve the reduction, cyclic recycling and reuse of packaging materials while reducing the bulk of product packaging and prioritizing green logistics that help to decrease energy resource consumption. In short, we have been hard at work to fulfill our mission of manufacturing various eco-friendly products that are compliant with pertinent regulations. “Quality that brings satisfaction to customers” is our quality policy at SNI. As “meeting customers’ expectations and ensuring legal compliance are the most fundamental requirements for SNI”, we are committed to stay true to the company’s service spirit of “customer satisfaction”. SNI has established long-term collaboration with its partners in order to deliver high quality products and fast, professional services of the unparalleled competitiveness to customers in order to win their support and recognition. SNI takes green sustainable operation seriously, and as such, steps have been taken to ensure that all our raw materials used for manufacturing are compliant with pertinent green and environmental regulations. And as such, SNI is actively assisting vendors in its supply chain to transform into green enterprises while continuing to update our knowledge of the latest international regulations (i.e., EU’s RoHS directives, REACH-SVHC and so forth), customers’ demand for Green Product (GP) and relevant quality requirements before explicitly asking and assisting our suppliers to ensure compliance with customers’ GP and quality requirements as we continue to promote our green sustainable value chain.
Pursuit for Customer Satisfaction – Customer Relation Management As it is vital for the company to secure customer support and recognition in order to ensure continual profits in the future, SNI has been actively collecting customers’ suggestions and demands in the hopes of better understand customers’ needs so that we can provide professional services they need and establish partnership relation with customers through long-term collaboration in order to earn their trust and satisfaction. From our day-to-day product distribution to our repair services, each and every encounter with our customer serves as an opportunity for us to listen to the voices of our customers. Through intensive communication, we have made an effort to handle and resolve customers’ issues as quickly as possible. Not only that, SNI will continue to convey our philosophy in sustainability to our customers in order to earn their support and recognition. Implementing routine customer satisfaction survey stands as an important component in our customer relationship management and hopefully through our efforts, we will be able to convince our customers that SNI is a partner that is trustworthy.
Handling Customer Complaints As “meeting customers’ expectations and ensuring legal compliance are the most fundamental requirements for SNI”, we are committed to stay true to the company’s service spirit of “customer satisfaction”. In order to accommodate the different needs of our customers around the world, SNI has established its maintenance service and customer service center in order to provide customers with immediate and fast after-sales services. Upon receiving customers’ feedback on specific issues or request for service, our dedicated customer service personnel are able to promptly provide rudimentary product analysis and guidance for customers. In addition, through our internal product issue management platform, we are able to quickly relay customers’ issue with products to dedicated analysis unit, which will, in turn, carry out problem verification and analysis so that quality engineering unit can implement quarantine plans and propose preventive strategies. Finally, our customer complaint handling department will conduct detailed cause analysis and ensure that the counterstrategies implemented are satisfactory to customers in order to inform customers regarding the outcome of rectification so as to resolve their issues and ensure their satisfaction. In the future, we shall continue to strengthen our production and improve our manufacturing capabilities so that we can deliver high quality products and fast, professional services of unparalleled competitiveness to customers in order to win their support and recognition.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Stakeholder needs and communication channels
Item \ year 2013 2014 2015 2016 2017
Total no. of customer complaints 44 51 28 52 18 No. of incidents under improvement 0 0 0 0 0 No. of incidents that have been rectified 44 51 28 52 18 No. of incidents yet to be rectified 0 0 0 0 0
Introduction of New Customer Projects
Based on “market trends”, “direction of competing products” and “customer needs”, SNI has strategically launched new products and incorporated various test stages for customers esign erification Correction in order to attain the level for mass production so that we can complete the shipping process smoothly while helping customers to launch their end-products to market. Pro uct Pro uct Mar et S ecification lanning conce tion assessment c ange By maintaining positive relationships with our customers and learning about their potential needs, we integrate new product planning for our upstream and downstream esign esign esting esign esign re ie vendors in order to promote new technologies and products. We will also review erification im lementation product specifications, testing standards and inspection regulations before evaluating samples and arranging for sample submission. SNI’s product service personnel would P sical P sical esign c ange unctional esign testing be dispatched to customers’ production lines to follow the manufacturing process ins ection and monitor product status at all times in order to reflect issues on customers’ end Pro uction Pro uction for targeted analysis and introduction of solutions so as to resolve any quality related Mass Process ca acit ro uction lanning testing o timi ation issues that customers may have to ensure customer approval. By collaborating with ase our supply chain in our planning for new site/new material to satisfy maximum shipping demands, we will be able to maximize the profits for SNI.
Customer Relations and Satisfaction
SNI takes initiative to learn about customers’ needs and issues by conducting routine annual satisfaction survey, which focuses specific product aspects such as “quality”, “shipping”, “pricing”, “service”, “complaints”, “professionalism” and so as key evaluation indicators. Together with the fields for open-ended suggestions, we were able to collect customer opinions and suggestions. At the same time, we have also been monitoring various internal statistics and customer feedback performance indicators, such as the frequency of customer disconnection, damages to customers’ reputation, customer notifications and other issues relating to quality or shipping. Based on the aforementioned indicators, we have compiled the outcome of customer satisfaction analysis before presenting it during our management review meetings for discussion as reference data for the company’s short-term and long-term operational plans. Our original target for customer satisfaction score was 90 and based on our observation of customer satisfaction trend, we noticed that after 2015, our customers satisfaction has been improving on the whole and in an effort to better respond to our customers’ expectations and needs for quality and technology, SNI will continue to strengthen our production and improve our manufacturing capabilities so that we can achieve customer service quality stability. For 2018, we have kept our target for customer satisfaction to 90%.
Customer Satisfaction Performance nit 90 90 87 77 75.80 80 75 75 75
2013 2014 2015 2016 2017 ear Scores of customer satisfaction R
Best Supplier Recognitions awarded by customers to SNI:
Pursuit for Customer Satisfaction – Customer Relation Management P39 Product and Service Violations
Out of our concern for consumer health and safety, SNI has established specific regulations that require all products to pass pertinent safety regulation and standard testing in order for our products to be equipped with specific safety characteristics. After products have passed safety standard certification, corresponding safety standard labels will be put on the products as our way to ensure that our products have met the required safety target. In the future, we will continue to work with customer requirements and engage in new product safety regulation certification applications so that we can achieve our target score of 100% in terms of safety improvement evaluation. With regards to management of restricted substance for our products, SNI has complied with pertinent regulations and customer requirements by ensuring that all our products are compliant with international regulations and directives such as RoHS, REACH-SVHC, ELV and so forth. Not only that, we have also labeled our shipping cartons with RoHS stamps and took a step ahead of the competition by introducing various green products that are free of halogen (chlorine, bromine) and lead. When it comes to our control of restricted substances, our implementation for health and safety improvement evaluation reached 100%. All SNI product packaging contains clear labeling and information such as the intended usage, applicable region, relevant labels for specific inspections and default settings in order for users to perform settings quickly and with ease while having a general idea on the certifications and features for the product in order to strengthen their confidence in the product they have purchased. We have also established comprehensive after- sales service system to provide the assurance that our customers expect for purchasing our products. SNI has established its professional legal affairs department and stringent audit systems on top of meticulously following on pertinent regulations that have been revised and opportunities in which conflicts could arise along with carrying out preventive studies as a way to eliminate any likelihood of product non-compliance due to amendments to specific laws or regulations. Thus far, the company has been compliant with pertinent regulations and there have been no incidents of health, safety and label related violations in 2017. In the future, SNI will continue to rely on the following approaches of management to preventing potential violations of product and service related regulations: 1. Participate in relevant information sessions on the amendment of regulations governing product labels in Taiwan and make relevant adjustments to ensure compliance with pertinent policies. 2. When legal affairs personnel review relevant documentations on quality assurance or commitment on restricted substances, they shall be required to confirm with relevant units on the latest regulations.
Privacy and Information Security Protection
SNI takes personal information management very seriously and in conjunction with the “Personal Information Protection Act” promulgated by the government in 2012, the company has established its “Personal Information Protection Management Procedure” in 2014 to ensure that all relevant departments will strive to safeguard customers’ privacy and identify confidential documentations based on practical needs by formulating the confidentiality strategies and guidelines in accordance with the needs of various departments. For our upstream and downstream vendors, we have x established routine meeting procedures and notification systems. Internally, we have promoted relevant measures including internal auditing, external auditing, targeted project management by designated personnel and so forth while establishing response and handling protocols in the event of confidential document/proprietary technology loss. SNI appreciates the fact that protection of customers’ relevant information is of utmost importance and has therefore established its customer data management system to handle customer information, orders, pricing, product specifications, preferred methods of shipping and so forth. Through this management system, we were able to secure customer privacy and relevant product databases to achieve effective integration of data classification, thereby saving storage space and security. Not only that, we have also appointed designated staff to maintain the management system and established access privileges with appropriate security and verification mechanisms to protect customer information by preventing unauthorized access, loss, misplacement, alteration and so forth to ensure customer privacy and product information protection in order to facilitate mutual trust and collaboration between SNI and its customers. With our customer information management system and our stringent control over customer privacy and product information, SNI has not had any related violations that resulted in fines or penalties thus far. We will continue to strengthen our customer information management system in order to fully prevent threats of customer privacy or product information loss while working to increase customer satisfaction so that we could achieve win-win for both parties. Development of Green Products With modern technologies advancing by the day, the resulting greenhouse gas emissions have led to global warming and climate changes; not only that, exhaust fumes, effluents and waste from factory productions have also brought about environmental pollutions. To make matters worse, unchecked development of fossil fuels has exhausted earth’s limited resources. As our environment faces worsening conditions, governments around the world have established relevant international regulations and directives (i.e., EU’s ROHS directive, REACH-SVHC, Montreal Protocol, Greenpeace , WEEE directive, and China’s RoHS directive and so forth) in an effort to mitigate the impacts. Similarly, the United Nations also adopted the Paris Agreement on December 12, 2015 to replace the Kyoto Protocol and for SNI, our customers have also proposed Green Product requirement and relevant quality requirements in the hopes of working hand in hand to alleviate the worsening environmental conditions. SNI has been engaged in green product R&D design for product lifecycles that begin with raw material, manufacturing, transportation and shipping to customers, ending at the process of disposal; at the product design phase, we opt for compact product form factors in order to cut down on the materials needed and when it comes to the selection of materials, priority is given to substances that are toxin and hazard free while being easily broken down for further processing without compromising safety and energy performance during product usage. At the manufacturing phase, we would adopt clean production to reduce material wastage and utilize energy-saving production equipment to lower energy resource consumption; with regards to packaging material, we opted for simple and minimalistic packaging rather than elaborate packaging to facilitate recycling and in turn prevent unnecessary consumption of raw materials. In short, we have taken steps to ensure that our products are safe and energy-saving during their lifecycles and easy to recycle and reuse when scrapped. At different phases of development and usage, our products are compliant with pertinent green and environmental regulations as we endeavor to create green products that result in minimal environmental impact.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Innovative Material and Technological Development
Here are SNI, we are well aware that earth carries limited energy resources, and hopefully, by adopting designs that feature recyclable raw materials in our products, we will be able to mitigate the environmental impacts caused by our products when they reach the end of their lifecycles by focusing on the source as we strive to reduce waste generation in our processes. By achieving precise control over our use of non-recyclable and recyclable raw materials (in terms of weight, dimensions, ratios and so forth) in various processes of product design, raw material purchasing, production and scrap management, SNI has effectively contributed to the cyclic use of energy resources. SNI will continue to promote its philosophy of green product design and product carbon reduction plan to match our product lifecycles with the collaboration with our suppliers for relevant inventory and visits for verification in order to ensure thorough disclosure of energy resource consumption data at different phases of production as we strive to complete our product carbon footprint certification. In addition, through strategies of product material selection, process optimization and carbon reduction for products while promoting energy-saving, carbon reduction and water conservation activities on our suppliers’ end to fully improve the energy and water resource efficacy for all product manufacturing. Hopefully, through our series of green product planning and activities, we will attract our upstream and downstream vendors to join our ranks and work together as we achieve our green vision and become green enterprises. This will in turn create more profit for the business as we coexist and prosper with our environment in harmony.
Improving Product Energy Efficiency
In light of greenhouse effect that has caused climate changes, products manufactured by different industries have all steered towards energy- saving designs. Incidentally, the same can be said for SNI’s product development design. As the parts and materials used for electronic products and appliances determine the level of product energy consumption, which in turn translates to GHG emission and impact on the environment, the reduction of product energy requirement and design of energy saving features to facilitate better energy efficiency are of vital importance to mitigating environmental impact and alleviating the effects of climate changes. SNI’s external power supplies have been built with parts that are compliant with the latest energy regulations. As for the selection of internal parts for other SNI products, we also prioritize parts that require lower power consumption and strive to reduce energy use through specific software features to achieve optimal adjustment based on the usage scenario. In the future, we will continue to promote products with energy-saving features or eco-friendly operating models (i.e., wired/wireless products that support GREEN MODE) in order to strengthen the support of the latest energy- saving standards for our products.
Product Designs that Facilitate Reduction in Resource Usage and Easy Recycling
When it comes to our product design, SNI embraces green design philosophies that revolve around reduction, cyclic, recycling and reuse. Apart from offering additional safety protection for customers, products with such features also go a long way towards building better product image as they not only help users to save costs but also contribute to the cause of environmental protection, carbon reduction and efficient use of energy resources. Furthermore, reduction of packaging materials means smaller shipping bulk and easier logistics, not to mention lower costs for product storage and transportation – thereby facilitating green logistics management to create more profits. Hopefully, through our product packaging reduction efforts, we will be able to create a scenario of “triple win” for customers, the environment and SNI. Our statistics from 2017 showed that approximately 99% of the weight of our packaging materials consisted of recyclable materials.
▲ SNI established its waste plastic material ▲ Paper pulp molding in 2017 – using recycled pulp ▲ Recycling of partition trays in 2017: We resource recycling identification icon in 2017: as the material for paper pulp tray packaging for recycled a total of 4,610K pcs we completed 63 projects. products: we completed 46 projects.
Future directions on product material recycling and reuse: 1. Establishing waste plastic material resource recycling identification: For plastic parts weighing over 25g or with surface area exceeding 200mm2, they will be stamped with the plastic recycling symbol. 2. Adjust the ratio of recyclable paper raw materials: Paper pulp molding – for products packed in paper pulp trays, we will be using recycled paper pulp as the material for further recycling and reuse. 3. Establish categories of non-recyclable and recyclable raw materials for packaging in our system in order to determine the ratio of each in terms of weight. 4. Recycling of partition trays: Carry out quantitative statistics and implement partition trays for materials from our suppliers.
Pursuit for Customer Satisfaction – Customer Relation Management P41 Examples of Green Product Innovation
PoE Injector
Product innovation
New technology to reduce standby power consumption for Standard PoE Adapter.
Green product features
Product that is fully lead and halogen free. The design proposes a new method to activate PSE controller by checking if equipment is connected via a network cable to resolve the aforementioned issue of power consumption in standby. In the original design, the power consumption was 1W; the design reduced the power consumption to 0.1W to achieve energy-conservation by 90%. Based on all products of this model sold in 2017, SNI has indirectly saved 2,808,000 kWh of power.
Reconfiguration of voltage differential control system from PoE Injector power output
Product innovation
The design proposes a new method to achieve system reconfiguration through voltage differential from power output to resolve the issue of existing technology as described below.
Green product features
Product that is fully lead and halogen free. The old design involves the use of switch components as the switch. However, issues of power loss tend to occur during polarity switch and could lead to system malfunction. In order to resolve the issue of power loss, this design proposes a new method to achieve system reconfiguration through voltage differential from power output. It enables users to save the man-hours required to perform routine system restoration and reduces the risk of occupational safety. In the original design, it would take 2.1 hours to perform system restoration; the patent reduced the system restoration time to 0.1 hours. The patent helps to save approximately 400,000 man-hours of labor per year.
Press mold antenna feed point assembly
Product innovation
The design features a new method for antenna feed point assembly to replace the traditional method of soldering the conductors of the transmission cable to the antenna structure.
Green product features
This design features a new method of antenna assembly to replace the traditional method of antenna mold feed. The manufacturing of antenna had been time consuming and labor intensive. This new method of antenna production is more efficient. In the original design, the assembly operation would take 0.11 hours; the new design reduces the assembly time to 0.01 hours, thereby saving approximately 20,000 man-hours per year.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 SNI received the honor of Best of Show for CEDIA 2017
The U.S. CEDIA EXPO is one of the world’s largest and most professional exposition for smart home and multimedia entertainment systems organized by the Custom Electronics Design and Installation Association (CEDIA) of the U.S. During the CEDIA EXPO, an anonymous panel of Residential Systems representatives and professional journalists and testers from renowned U.S. TWICE Media LLC would evaluate various featured products at the event to determine the winners of the CEDIA Awards – a prestigious and authoritative award in the industry. Our EnGenius EMR3000 Wireless Router received accolades from foreign media along with CEDIA’s Best of Show award for 2017. We are tremendously grateful to the panelists for bestowing such recognition to SNI product.
EnGenius EMR3000 Wireless Router
EnGenius EMR3000 Wireless Router is designed with full function system features and built-in EnGenius EnMesh™ wireless connectivity technologies. With EnMesh™, users will be able to activate multiple EMR3000 at the same time to expand the coverage area of wireless network to the entire home, including indoor and outdoor environments. Users will be able to stay connected to their network even at their balcony or back yard. In addition, the system requires users to perform only simple settings and enables quick installation through the use of the EnMesh™ mobile application so that users can monitor their home wireless network anytime, anywhere.
SNI received the Commercial Integrator BEST Awards 2017
Commercial Integrator’ BEST Awards is presented to outstanding solution providers jointly selected by a group of experts, system integrators and editors of the Commercial Integrator magazine for outstanding products and services in the domain of commercial integration. EnGenius EWS1025CAM AP MeshCam received the Commercial Integrator BEST Awards 2017. We are tremendously grateful to the panelists for bestowing such recognition to SNI product.
EnGenius EWS1025CAM Network Camera
EnGenius EWS1025CAM is the first AP camera in the market to feature access point functionalities. Housed in a compact body are 2 mega-pixel CMOS and 120 wide-angle lens to deliver high quality image at 30FPS. The product is also built with motion/voice-triggered video capturing function that makes it possible for users to receive warning notification immediately when a problem arises. Furthermore, EWS1025CAM also integrates mesh network technologies to enable quick addition of equipment to optimize routing between APs with support for management via the ezMaster network management software.
Pursuit for Customer Satisfaction – Customer Relation Management P43 Supplier CSR Promotion Guided by our philosophy for sustainable operation, SNI has continued to promote its corporate social responsibilities and established a platform for direct advocacy, consultation, communication and interaction with our suppliers through Supplier Meeting as a means to advocate SNI’s latest version of restricted substance management procedure, future environmental protection policies, quality requirements, labor ethics management while responding to various issues such as EICC, effects of GHG emissions, exhaust of energy resources and climate change to work together with our suppliers to fulfill our corporate social responsibilities. We urge our suppliers to adhere to the directions as laid out in the EICC and complete their supplier corporate social responsibility self-evaluation forms as SNI shares its green know-how and experience in energy-conservation and carbon reduction with suppliers through the platform as a way to foster consensus and awareness for green supply chain philosophy among our suppliers as we jointly create a comprehensive green supply chain system to achieve the goals of “multi-win” by creating green products that are environmentally friend, contributing to improving the lives of mankind and attaining harmonious coexistence and shared prosperity for all. Green Product Requirements
We have continued to collect and assess pertinent regulations around the world and customers’ requirements for restricted substances in order to stay abreast with the latest global environmental protection trends while actively ensuring that all our products are compliant with the requirements for Green Products. To this end, we have employed our “Supplier Material Inspection and Reporting Management Mechanism” as a green product assurance instrument and require new suppliers to sign our Hazardous Substance Management Declaration as a means to reduce the use of hazardous substances in our products and integrate our management and identification of hazardous substances at our plants to achieve total control over material compliance as required by our green product policy – to comply with pertinent regulations and customer requirements by delivering products that are free of hazardous substances as we endeavor to achieve green design and development.
Green Product Policy
To be compliant with pertinent regulations and customer requirements To comply with the requirements of the RoHS and WEEE directives by ensuring all products are free of restricted substances that are harmful to the environment while meeting customers’ requirements for waste appliance and electronic product recycling rate to prevent excessive quantity of wastes from scrapped end-user electronic products/appliances to be disposed via landfill. In addition, we will also increase our ratio of resource recycling in order to reduce the environmental impact of our products. To adhere to the spirits of the ErP directive, including the adoption of eco- design, compliance assessment, self-declaration and so forth while disclosing relevant information to consumers when necessary. Providing products free of hazardous substances We prioritize the identification of international green standards and requirements by environmental NGOs. We shall continue to strengthen our green supply chain and promote systemic control in order to deliver products with no hazardous substances to our customers. Endeavor for green design development To be equipped with the product lifecycle concept and assessment capacity as stipulated in the Annex I Eco-Design Requirement in the ErP directive. We shall equip the company with the concept of product lifecycle and capacity to carry out relevant assessments. We shall strive to introduce rationales of product lifecycle and use relevant assessment data to identify key points for green design so that SNI can make further progress towards green design and development.
SNI’s Purchasing Policy 1. To comply with relevant company policies and operate on a fair and reasonable principle to create profits for the company while establishing a relationship of harmonious coexistence and shared prosperity with our supplies. 2. To screen and nurture competent purchasing personnel and implement job rotation to boost their competence at work. 3. To assume adequate control of our supply sources as we actively cultivate more outstanding suppliers, outsourced vendors and secondary sources. 4. To ensure control over four major elements of quality, delivery time, pricing and after-sales services in order to create more profit for the company. 5. To familiarize ourselves with market supply and demand, enhance our professional know-how and ensure adequate communication and coordination to improve purchasing efficiency. Product CSR Requirements – Supplier Assessment and Induction In order to become a SNI material supplier, vendors are required to go through extensive investigation and assessment in various aspects, including material selection, identification, , incoming material management, scale of facilities, supply capacities, QA system and relevant inspection instruments in order to ensure that suppliers comply with SNI’s requirements for FQC, delivery time and use of restricted substances in order to facilitate smooth manufacturing operations. By purchasing materials at reasonable prices, we will be able to ensure profit for the company. For 2017, we have adopted new standards for our induction of key material suppliers, who are required to provide their “Supplier CSR Self- Assessment Form” in order for supplier screening to be performed based on various criterions for environment, labor conditions, human rights conditions, community impacts and so forth as identified in the self-assessment form. SNI expects 100% compliance from our suppliers with regards to these standards and vendors who fail to meet our expectations will not be considered for induction. The company is looking to work with outstanding suppliers who are well prepared to comply with CSR requirements as spelled out in the EICC right from the start of their collaboration with SNI. SNI had no new primary suppliers in 2017. We shall continue to promote our supplier assessment and evaluation policies in the future. For primary material suppliers, SNI’s purchasing department conducts audits on a monthly basis to evaluate suppliers based on their performance with regards to their FQC, delivery time, degree of cooperativeness in purchasing, business reputation (i.e., environmental and labor conditions, human rights, society and other negative impacts) and so forth. Suppliers who fail to meet SNI’s requirements will be notified to make relevant rectifications and should suppliers fail to heed SNI’s warning to rectify, they will be replaced with other suppliers in reserve. In 2017, we have included items on EICC requirements in our purchasing contracts and noted in the remark section on our orders to remind all suppliers to comply with the EICC requirements.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Supplier CSR Audit and Counseling
From our supplier EICC compliance audit, we have upgraded the audit into Supplier EICC Management Mechanism and established relevant audit and counseling measures. In addition to the establishment of the management mechanism in 2017, we have also launched energy conservation and carbon reduction management in the hopes that our suppliers will join our ranks in relevant promotions so as to establish positive image for SNI’s supply chain as a proponent of labor rights, human rights, safety and sustainable environment, thereby creating greater confidence in our customers. In 2017, SNI requested for Supplier CSR Self-Assessment for 7 of its primary material suppliers and all 7 suppliers responded accordingly. Results of the assessments were compliant with relevant requirements. Supply Chain Overview:
With regards to the profile of SNI’s supply chain composition, primary materials that are applicable to our supplier management procedures include PCBs, connectors, plastic parts, electronic parts, power supplies, die cast parts, steel parts and so forth. As of 2017, SNI has 291 suppliers, most of which are based in Taiwan.
Communication net or PC s ntennas C esign Communication Passi e com onents C assis net or c i set manufacturing Connectors Ca les stream R M manufacturing Po er su lies t er electronic arts ssem l testing com onents
nformation s stem an Communication net or R an manufacturing
Mi stream eri eral manufacturers e ui ment manufacturers ran mar eting
S stem integrators lectronic c annel o erators
o nstream elecommunication an nter rise an net or ser ice in ustr organi ational users S an famil users
No. and locations of SNI’s material suppliers as of 2017. Unit: Company
Items of key materials PCB Connectors Plastic parts Electronic parts Power supplies Die cast parts Steel parts Total
No. of Taiwanese 5 52 28 149 12 4 19 269 suppliers No. of foreign 3 2 2 13 1 0 1 22 suppliers Total 8 54 30 162 13 4 20 291
Commending Our Outstanding Suppliers: SNI’s Supplier Action for 2018
• To support SNI in the promotion of CSR (EICC) management – To cooperate with SNI’s onsite CSR (EICC) audit – To complete and submit CSR (EICC) Survey – To comply with pertinent labor and EHS regulations, laws and CSR (EICC) requirements • To support SNI in the promotion of energy saving and carbon reduction management
▲ SNI Chairman presenting our 2017 ▲ SNI Chairman presenting certificates of Outstanding Supplier Award to Qualcomm gratitude to suppliers that took part in Taiwan Corporation, Broadcom Limited, our charitable donations as our gesture Texas Instruments, Cavium Inc. and EISO of appreciation to our supply chain for Enterprise Co., Ltd. demonstrating their resolve in fulfilling their corporate social responsibilities.
Pursuit for Customer Satisfaction – Customer Relation Management P45 Promotion of Electronic Industry Citizenship Coalition (EICC) With the formation of the Electronic Industry Citizenship Coalition (EICC), it emerged as a standard of corporate social responsibility in the international community. By adhering to the standard, a company thereby demonstrates its capacity to systematically establish and implement sound and healthy systems for labor, corporate and product management, thereby creating a positive image that may help to boost customer confidence. And if we could validate our compliance with relevant requirements through external verification, we will be able to bolster our credibility and in turn reduce the frequency of second-party audits carried out by customers on our suppliers. In addition, it will prevent suppliers that have yet to satisfy customer requirements from receiving lowered ratings or have their status as qualified suppliers revoked. SNI takes relevant requirements of human rights, environment, safety, health and ethics management very seriously. We will continue to promote EICC and establish relevant employee policies as our commitment to protect employee rights. We will promote the philosophy of EICC to our suppliers in order to show our resolve to fulfill our corporate social responsibilities.
Customer Requirements
Conflict Mineral Management In order to deter the production and transaction of minerals mined in areas of conflict in African countries, which could otherwise perpetuate the conflict, the United States passed the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21 2011, thereby requiring manufacturers distributing products in the U.S. to submit their report of mineral source as required by the American Stock Exchange to prevent products containing conflict minerals from being imported into the country. In light of the Dodd-Frank Wall Street Reform and Consumer Protection Act, our customers have requested the company to investigate our supplier metal smelting service providers. Consequently, SNI’s QA Department had completed relevant investigations in December 2014 in accordance with our Conflict-Free Smelter and Due Diligence Form. Results from the investigations showed that none of our suppliers had acquired metals from conflict areas, meaning our customers can purchase SNI products with confidence. SNI has continued to conduct supplier metal smelting service provider audit and as requested by our customers in 2015 regarding conflict minerals, the company has duly carried out relevant investigations for verification. We received responses from approximately 40 suppliers for the investigation and found no suppliers had used metals harvested from conflict areas. SNI has therefore responded to customers by completing designated forms or filled out relevant information on designated websites on top of requesting our suppliers to carry out EICC Conflict Free Smelting and Due Diligence Investigation in order to have suppliers disclose the source of their metal supplies so that we may trace the source of specific minerals and prevent products containing conflict minerals (tantalum (Ta), stannum (Sn), tungsten (W) and gold (Au)). SNI had no violations of conflict mineral management requirements in 2017.
SNI’s Conflict Mineral Policy
As an upright corporate citizen, SNI is committed to fulfilling its corporate social responsibilities, respecting human rights and continuing to pay attention to conflict minerals by asking our supply chain to comply while implementing the following policy: • The company will not support or use metals harvested from areas involved in armed conflicts, illegal mining operations or inferior mining conditions. These minerals are also known as “conflict metals”. • Our suppliers shall ensure that none of their products containing gold (AU), tantalum (Ta), stannum (Sn) and tungsten (W) has been sourced from conflict mineral areas. This policy has been disclosed to all SNI employees and our supply chain and we expect all parties involved to adhere to the policy.
Green and Local Purchasing In 2017, SNI continued to promote material purchasing management. For material suppliers we have already inducted, the QA Department is responsible for carrying out routine Supplier Product Restricted Substance Management Audit; for newly inducted suppliers, their materials may only be accepted for usage after they have passed SNI’s green audit. For suppliers who are involved in the manufacturing of products in mass production, the company will schedule their audit plans in accordance with SNI’s product rating management principles each year and the audits will include onsite factory audit or review of documentations and so forth in order to monitor suppliers’ material quality and ensure that suppliers have duly complied with SNI’s green product requirements. Starting from 2016, SNI has responded to the government’s promotion of green purchasing and green consumption for enterprises and organizations by advocating the purchase of materials and products bearing the eco-friendly label as our approach to help employees foster the concept of green purchasing. In 2017, we have continued to sign the Green Procurement Letter of Intent to gradually establish our purchasing mechanism for general consumable materials and green product purchasing. In 2017, all SNI’s primary materials are compliant with pertinent requirements for restricted substance management. In the future, apart from continuing to purchase green raw materials that are compliant with the aforementioned requirements, the company will also be promoting general consumable materials and green product purchasing that are in line with relevant standards for recycling, low-pollution or energy-conservation as stipulated by relevant eco-friendly labels. Hopefully we will be able to gradually promote the operation to our supply chain as we work together to respond to the government’s initiative to promote general consumable materials and green product purchasing.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Amount for Purchasing Amount for Purchasing Green Purchasing Performance Item in 2016 (in TWD) in 2017 (in TWD) SNI has made a conscious effort to purchase materials and PCs 1,922,500 1,389,500 products with relevant eco-friendly labels. In 2016, our total amount Eco-friendly paper towels 20,520 52,820 of green purchasing (including PCs, , corrugated packaging cartons, Corrugated carton 31,272,000 37,710,377 etc.) came to TWD 33,239,920 and the amount increased to TWD Eco-friendly toner 24,900 16,350 39,174,597 in 2017. cartridges T5 tubes 0 5,550 Total 33,239,920 39,174,597
In conjunction with SNI’s Green Purchasing as art of its “Green Wireless Plan ” for 2017~2020, we will continue to purchase materials and products bearing the eco-friendly label and gradually establish our green purchasing mechanism to keep track of our green purchasing items and amounts and continue to record the amounts,and hopefully see an increase in green purchasing over the years in order to maintain our status as an enterprise of outstanding green purchasing performance. ▲ SNI was named an Outstanding Green ▲ SNI was named an Outstanding Green Purchase Private Organization for 2016 from Purchase Enterprise for 2016 from the Environmental Protection Agency on Taoyuan City Government, Department of October 27 2017. Environmental Protection on December 7 2017. Local Materials
We fully appreciate the significance of cherishing energy resources and the convenience and advantage of using local supplies. With the premise of satisfying product functional requirements and complying customer and legal requirements, we have sought and developed local suppliers to develop and test samples made from locally supplied materials in accordance with our new material acceptance and induction procedure while implementing our purchasing solutions in the hopes of reducing energy resource consumption and mitigating our impacts on the environment. In terms of material selection, apart from our considerations for competitive pricing and materials designated by customers, we would prioritize materials from local suppliers. We have continued to purchase materials locally to the best of our abilities in order to prevent unnecessary waste of costs and energy from air freight or ocean freight. Out of our primary purchasing needs for 2017, approximately 93% of our material purchases in Taiwan were attributed to local suppliers (calculated based on the proportion of amount from local purchases against total amount from all purchases). In 2015, as we opted for Taiwanese suppliers for specific metal pieces instead of foreign suppliers, our amount of local purchasing for the year increased significantly. In 2016, as our customers requested for designated modules that could only be acquired from abroad, our ratio of local purchase decreased slightly. For 2017, our ratio of purchases from local suppliers continued to decline primarily due to an increase in the number of customers that requested for products by designated manufacturers (all located in Mainland China). Consequently, our ratio of local purchases fell slightly yet again. Due to cost considerations, SNI may have to source specific materials from other areas instead of Taiwan and as such, we have down adjusted our target for local purchasing to 90%.
SNI’s Ratio of Local Purchasing
Region 2014 2015 2016 2017
Taiwan 95.18% 95.46% 95.27% 93%
Calculated based on the proportion of amount from local purchases against total amount from all purchases
Green Transportation and Logistics Management
The movement of green consumption has gathered momentum around the world. Consumers today are not only concerned about their own safety and health but genuinely care about the improvement of the earth’s environments. They have learned to reject products, services and consumptions methods that hamper environmental protection and this has in turn facilitated the development of green logistics. In 2017, SNI continued to improve its planning and implementation of logistic activities such as personnel and cargo transportation, storage, unloading and handling, packaging and so forth in order to achieve our objective of reducing environmental pollution and resource consumption. With regard to our personnel transportation activities, SNI has continued to optimize the service routes of its shuttle vehicles and adjusted service schedules in order to facilitate increase the rate of full vehicle occupancy while reducing the length of the shuttle service. We have also ensured that all company vehicles are properly maintained to keep them in optimal conditions so as to improve mileage while reducing energy consumption and carbon emission. With regard to cargo transportation, 2018 will involve inter-departmental coordination as we plan to achieve collective transportation of loose cargos in order to reduce the number of vehicle dispatches. Not only that, we will also be keeping track of the number of trips made by each vehicle in order to optimize our vehicle and personnel dispatch plan for product delivery so that we could achieve the highest possible utilization rate of vehicle storage space in accordance with routes designated by our customers. Goods to be delivered on the same route would transported by the same vehicle in order to reduce the number of trips to be made. This would help to reduce relevant expenses, increase our transportation efficiency by effectively eliminating convective transportation, thereby alleviating potential traffic congestions. For 2018, our goal is to complete our statistics on the number of trips made by transportation vehicles and reduce it by 1% in Q4.
Pursuit for Customer Satisfaction – Customer Relation Management P47 Create a LOHAS working environment to boost employees' feelings of cohesion and well-being
The gym Received the Received was officially Accreditation of the Badge of inaugurated and Taiwan Training Accredited Quality System opened on Healthy (TTQS) Evaluation January 19, Workplace 2018.
“Talent” has always been the vital company asset that SNI cares most about. We take pride in having provided a stage where our passionate and energetic employees could put their talents and skills to the fullest use by actively creating a fair, healthy, caring work environment that encourages learning and innovation. We also strive to provide reasonable and competitive wage and benefits to our employees. On top of that, we also provide comprehensive training and development courses for all employees so as to assist them in their improvement of professional skills and self-growth over the course of their careers. As far as SNI is concerned, having healthy employees is not only the top priority as a provider of LOHAS workplace but also a source of joy for us as an employer.
Overview of Employees around the World Through routine human resource structure analysis, we were able to monitor the changes in relevant statistics and have a good grasp on the distribution of the company’s human resource structure (i.e., age, gender, academic credentials and so forth). We are able to make relevant adjustments to our human resource profile in accordance with the company’s developmental needs by investing more professional personnel in sales, R&D, design and so forth as we work together towards SNI’s next milestone. The company will continue to perform its routine analysis of human resource structure, turnover rate, causes of personnel departure and so forth and recruit for more manpower based on the requests for human resources from various units.
Age/Gender/Region
SNI has worked hard to create a positive image as a company that cares about employee benefits and development in order to attract fresh graduates to join our ranks, making SNI an enterprise that is full of vitality and energy for innovation. As of the end of 2017, the average age for all employees was approximately 35 years (37 years for male and 34 years for female); in terms of age distribution, approximately 28.87% (male: 18.72%, female: 36.95%) of our employees are below 30 years of age and the remaining 71.13% of them are above the age of 30 (male: 81.28%, female: 63.05%).
Age distribution
Item\Year 2015 2016 2017
Age distribution All Male Female All Male Female All Male Female Average age (year) 34.05 35.82 32.87 34.81 36.38 33.67 35.39 36.92 34.18 Average work seniority (year) 3.58 4.02 3.29 4.13 4.29 4.01 4.54 4.68 4.43 Employees below 30 years of age (person) 368 80 288 341 82 259 306 88 218 Ratio of employees below 30 years of age (%) 34.46 18.78 44.86 31.00 17.67 40.72 28.87 18.72 36.95 Employees between the age of 30(including) 655 331 324 707 363 344 692 358 334 and under 50(person) Ratio of employees between the age of 61.33 77.70 50.47 64.27 78.23 54.09 65.28 76.17 56.61 30(including) and under 50(%) Employees over the age of 50(including) 45 15 30 52 19 33 62 24 38 (person) Ratio of employees over the age of 4.21 3.52 4.67 4.73 4.09 5.19 5.85 5.11 6.44 50(including )(%)
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Ratio of male and female employees: As of the end of 2017, SNI had 1,060 employees on its payroll, with 590 female employees (55.66%) and 470 male employees (44.34%). With the exception of the massage therapist and consultant, all remaining SNI employees are non-fixed term employees. The breakdown of SNI employees by gender is as follows: atio of male and female employees All person All person All person person person person person person person
ear emale ale
SNI has complied with government policy and pertinent regulations by hiring mostly native citizens of Taiwan in our personnel recruitment; with regards to promotions to managerial positions, we would also prioritize outstanding personnel at SNI in order to appoint or promote relevant personnel in accordance with the actual needs in management and administrative operations. The company would also conduct competency review for managerial staffs in accordance with relevant systems. In the future, SNI will continue to adhere to government policy and regulations by hiring native citizens of Taiwan to be the bulk of the company’s workforce.
For employee recruitment and appointment, we also focus primarily on Taiwanese citizens. The breakdown of SNI employees by nationality is as follows:
2015 2016 2017 Item\Year All Male Female All Male Female All Male Female No. of employees of native 803 422 381 835 460 375 806 455 351 citizenship(person) Ratio of male and female employees of 52.55 47.45 55.09 44.91 56.45 43.55 native citizenship (%) No. of employees of foreign 265 4 261 265 4 261 254 15 239 citizenship(person) Ratio of male and female employees of 1.51 98.49 1.51 98.49 5.91 94.09 foreign citizenship (%) Ratio of employees of native citizenship (%) 75.19 99.06 59.35 75.91 99.14 58.96 76.04 96.81 59.49
Ratio of managers of native citizenship: (supervisors of managerial positions and higher ranking)
anagers of native anagers of native anagers of native citi enship All citi enship All citi enship All person person person
person person person anagers of foreign anagers of foreign anagers of foreign citi enship All citi enship All citi enship All One person One person One person person person person
ear anagers of native citi enship- emale anagers of native citi enship- ale anagers of foreign citi enship- ale
No. and ratio of full time employees
2015 2016 2017 Item\Year All Male Female All Male Female All Male Female Number of full time employees (person) 1068 426 642 1100 464 636 1060 470 590 Ratio of full time employees (%) 100 100 100
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P49 No. of employees by position - Managerial personnel
2017 person person person person person person person person person person person person 2016 person person person person person person person person person person person person 2015 person person person person person person person person person person person person anagerial personnel anagerial personnel nder anagerial personnel between the age of anagerial personnel over All the age of incl ding and nder the age of the age of incl ding
All ale emale
No. of employees by position - Non-managerial personnel
2017 person person person person person person person person person person person person 2016 person person person person person person person person person person person person 2015 person person person person person person person person person person person person on-managerial on-managerial personnel on-managerial personnel between the age on-managerial personnel over personnel All nder the age of of incl ding and nder the age of the age of incl ding
All ale emale
No. of employees by position - Operators
2017 person person person person person person person person person person person person 2016 person person person person person person person person person person person person 2015 person person person person person person person person person person person person Operators between the age of Operators personnel over the Operators All Operators nder the age of incl ding and nder the age of age of incl ding
All ale emale Note: Managerial personnel refer to section chief and higher ranking supervisors (excluding project leaders); non-managerial personnel refers to employees who are not managerial personnel or operators. No. of new employees
2017 person person person person person person person person person 人 person person
2016 person person person person person person person person person 人 person person
2015 person person person person person person person person person person person person
ew employees nder the ew employees between the age of ew employees over the age of o of new employees All age of incl ding and nder the age of incl ding
All ale emale Note: “New employees” include all employees that have reported for duty in each specific year.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 No. and ratio of former employees - Direct personnel
2017 person person person person person person person person person person person person 2016 person person person person person person person person person person person person 2015 person person person person person person person person person person person person
irect personnel All irect personnel nder the irect personnel between the age of irect personnel over the age age of incl ding and nder the age of of incl ding
All ale emale
Note: Direct personnel: production line operators; indirect personnel: other non-production line personnel. Former personnel: employees are considered to have left the company in a specific year if they complete their resignation process on December 31st of that year.
No. and ratio of former employees - Indirect personnel
2017 person person person person person person person person person person person person 2016 person person person person person person person person person person person person 2015 person person person person person person person person person person person person ndirect personnel nder ndirect personnel over the age ndirect personnel All ndirect personnel between the age of the age of incl ding and nder the age of of incl ding 學歷分佈 All ale emale
Note: Direct personnel: production line operators; indirect personnel: other non-production line personnel. Former personnel: employees are considered to have left the company in a specific year if they complete their resignation process on December 31st of that year.
In this era of highly competitive knowledge economy, SNI has come to the realization that talents are the key to the company’s sustainable operation. We have been working diligently to enhance the quality of our human resources. In terms of distribution of employees’ academic credentials, as of the end of 2017, approximately 22.83% of SNI employees have a master’s degree or higher (male: 38.73%, female: 10.17%); employees with an undergraduate degree or higher consisted approximately 74.15% of the company’s total workforce (male: 89.15%, female: 62.20%).
Distribution of Academic Credentials
2017 person person person person person person person person person person person person person person person person person person
2016 person person person person person person person person person person person person person person person person person person
2015 person person person person person person person person person person person person person person person person person person
ocational college nior high school octorate degree aster s degree ndergrad ate degree High school grad ate degree or lower
All ale emale
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P51 Human Rights Protection As society matures and grows, the general populace has been paying more and more attention to “human rights” by the day. SNI has referred to and adhered to relevant human rights requirements as spelled out by EICC to prevent potential violation of human rights in our corporate operations. In the mean time, we have implemented human rights protection training for all employees and established relevant channels for communication and grievances in order to keep our working environment secured and that employees’ rights are protected and respected. In our internal documentations and procedures such as our “Work Rules”, “Code of Ethical Conduct”, “Reward and Violation Management Procedure”, “Sexual Harassment Prevention Measure and Disciplinary Action Regulation” and so forth have all clearly stated the company’s stance on the protection of employee’s human rights, including compliance with fundamental regulations, employment at will, humane treatment, prohibiting discrimination and sexual harassment, prohibiting any treatment or punishment that is non-humane or humiliating, engagement or support of physical punishments, making psychological or physical threats, verbally abusing employees or unfairly discriminating employees due to factors such as their gender, age, ethnicity, marital status, pregnancy, childbirth, political affiliation, religious belief or any other reasons. The company has established its employee opinion box reporting mechanism, which enables employees to make named reports. Once verified to be true, SNI will activate its investigation protocol and internally, the company will audit all plants on relevant human rights and labor conditions. In 2017, we had no violations of human rights or discrimination. We did receive a complaint of sexual harassment, which has already been investigated and handled properly. SNI shall continue to promote EICC and establish relevant employee policies to reiterate our stance on protecting employees’ rights. We will also promote the philosophy of EICC to our suppliers as our way of demonstrating our resolve to fulfilling corporate social responsibilities.
Employment at Will and Humane Treatment
SNI adopts the principles of free will when it comes to the recruitment of employees. As long as employees provide ample notice in advance, they are entitled to resign and leave the company voluntarily. During the process of recruitment, SNI will not ask applicants to hand over identifications such as their I.D. or passport, nor demand for any kind of “deposit” as condition for hiring. SNI pledges that the company will never adopt any cruel or inhumane management system for its employees, and that include any form of sexual harassment, torture, physical punishment, psychological or physical oppression or verbal abuse.
Management of Underage Labor
In an effort to protect the physical and mental well-being of those who have yet to come of age while promoting Taiwan’s mandatory education system in order to safeguard the rights of the underage demographic, the Labor Standards Act has clearly stipulated that no employers may hire teenagers below the age of 15 for any form of work. Not only that, EICC has also explicitly forbidden the employment of child labor (under 15 years of age) by stipulating that manufacturers may not resort to child labor in any part of their processes. With regards to recruitment, our selection process involves an interview of the applicants fitting the requirements of the job description by the supervisor of the hiring unit in accordance with SNI’s “Personnel Appointment Management Regulations” before carrying out relevant appointment operations, including the determination of suitable wage and verification of applicant’s credentials. Prior to official appointment, we would also verify applicants’ age in order to prevent inadvertent hiring of child worker or minors who are below 18 years of age. For the management of child labor, SNI has implemented the following 3 measures: 1. Child worker screening: the human resource and hiring unit shall be responsible for verifying the identity of job applicants in the recruiting process to screen out child workers and applicants who are not eligible; 2. Child labor reporting: any employee discovering instances of child labor is obligated to report to the human resource department immediately; 3. Relief for child labor: the company shall take all necessary actions to support and protect child workers and ensure their safety, health, education and development after their dismissal. SNI has complied with government regulations and relevant regulations in the EICC and had not hired any child worker or minors under the age of 18 in 2017.
Remuneration and Benefits
SNI takes pride in offering various benefits and perks for employees on top of generous wages and bonuses, which include meal allowances, performance bonuses, gift vouchers or gifts for the three major festivals, year-end bonus, group insurance for employees, wedding/childbirth/ bereavement/birthday subsidies, maternity/paternity leaves, flexible work hours and so forth. In addition, the company also provides outstanding dormitory environment and thoughtful benefits such as shuttle services. SNI shall routinely look into and refer to practices adopted by our competitors in order to ensure that our employees can enjoy more benefits.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Wage Guarantee
In order to comply with the government’s regulation on minimum wage protection, which was promulgated to ensure that workers will be able to earn sufficient wage for sustenance in exchange for their labor, SNI has established its “Remuneration and Benefit Management Regulation” in the spirits of the Labor Standards Act and Act of Gender Equality in Employment. Salaries for new employees are reviewed on a monthly basis to ensure their salaries are compliant with the company’s remuneration standard and that no discrepancies in remuneration exist due to employees’ gender. SNI provides standard wages that are no lower than the minimum wage that is legally required in all regions. For overtime time work performed by employees, the company also provides overtime pay as stipulated by national regulations. SNI will continue to adhere to government regulations and ensure that salaries for all our employees are no lower than the minimum wage, as illustrated in the table below.
Ratio of standard wages for SNI’s entry level personnel and the minimum wage stipulated by the government
Item\Year 2015 2016 2017
Ratio 1.20 1.20 1.14
Note 1: Ratio = Standard wage for SNI’s entry level personnel/Minimum wage stipulated by the government 2: Entry level personnel refer to direct personnel, i.e. production line operators.
Ratio of fixed salary for SNI’s male and female employees (base salary)
Item\Year 2015 2016 2017
Male Female Male Female Male Female
Managerial personnel 1 0.80 1 0.81 1 0.85 (ratio) Non-managerial 1 0.81 1 0.80 1 0.80 personnel (ratio)
Operators (ratio) 1 0.93 1 0.95 1 0.97
Note: 1. The base salary is the fixed minimum amount paid to employees for performing their given duties and does not include any extra remuneration such as overtime pay or bonuses. 2. Managerial personnel: refers to section chief and higher ranking supervisors (excluding project leaders). 3. The ratio of fixed salary for SNI’s male and female employees is calculated by Average total annual fixed salary/Total number of employees for the year.
Ratio of full salary for SNI’s male and female employees
Item\Year 2015 2016 2017
Male Female Male Female Male Female
Managerial personnel 1 0.79 1 0.88 1 1.00 (ratio) Non-managerial 1 0.75 1 0.79 1 0.83 personnel (ratio)
Operators (ratio) 1 1.86 1 1.15 1 0.99
Note: 1. Full wage includes: basic wage, bonus, duty allowance, seniority allowance, meal allowance, supervisor allowance, night shift allowance, overtime pay and so forth. 2. Managerial personnel: refers to section chief and higher ranking supervisors (excluding project leaders). 3. The ratio of full salary for SNI’s male and female employees is calculated by Average total annual payable salary/Total number of employees for the year. In compliance with the Labor Standards Act and Act of Gender Equality in Employment, SNI has taken relevant steps to ensure gender equality and safeguard employees’ right to work whilst looking after their infants so as to actively create an ideal environment that enables employees to focus on both their work and family. Apart from doing well with their career, our employees will also be able to enjoy fulfilling family lifestyles. SNI has established its procedure for leave without pay in order to safeguard employees’ right to be reinstated after returning from their maternity leave.
Maternity leave Unit: person
Item\Year 2015 2016 2017
No. of employees eligible for maternity leave 14 21 4
No. of employees actually applied for maternity 14 21 4 leave No. of employees who returned to the company to 11 12 4 work after their maternity leave
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P53 Parental leave
2015 2016 2017 Item\Year All Male Female All Male Female All Male Female
No. of employees eligible for parental leave without pay (person) 147 93 54 121 81 40 155 118 37
No. of employees actually applied for parental leave without pay (person) 12 1 11 17 3 14 11 5 6 No. of employees scheduled for reinstatement after their parental leave 9 2 7 17 3 14 13 2 11 without pay (person) No. of employees actually reinstated after their parental leave without pay 6 0 6 12 1 11 5 1 4 (person) No. of employees reinstated after their parental leave without pay and have stayed in the company for more than a year upon their 3 2 1 5 0 5 12 1 11 reinstatement (person) No. of employees reinstated after their parental leave without pay in the 5 2 3 6 0 6 12 1 11 previous year (person) parental leave application rate (%) 8.16 1.08 20.37 14.05 3.7 35 7.10 4.24 16.22
Reinstatement rate for employees that have taken parental leave (%) 66.67 0.00 85.71 70.59 33.33 78.57 38.46 50.00 36.36
Retention rate for employees that have taken parental leave (%) 60.00 0.00 33.33 83.33 0 83.33 100.00 100.00 100.00
Note: 1. The number of employees eligible for parental leave without leave was calculated based on the number of employees who have applied for maternity and paternity leaves within a three-year period. 2. Parental leave application rate (%) =Actual no. of employees who have applied for parental leave /Number of employees eligible for parental leave. 3. Reinstatement rate for employees that have taken parental leave (%) = No. of employees reinstated after their parental leave for the year/ No. of employees scheduled to be reinstated after their parental leave for the year. 4. Retention rate for employees that have taken parental leave (%)= No. of employees who have taken parental leave in the previous year and have been reinstated and stayed in the company for more than a year upon their reinstatement / No. of employees who have been reinstated after having taken their parental leave in the previous year.
Amenities for Employees SNI values the cultivation of talents and offering of employee benefits. We have been actively working to create an outstanding environment that enables our employees to pay equal attention to their careers and personal lifestyle in order to fully develop their unique traits and talents as members of SNI. Apart from doing well in their work, our employees are also able to pursue fulfilling lifestyles of happiness. In order to encourage employees to cultivate healthy lifestyles and habits when they have spare time from work, SNI has planned to set up a gym at the company in November 2017. The gym was officially inaugurated on January 19, 2018 and features pieces of fitness equipment and facilities including a dance classroom. SNI will be organizing various fitness contests and aerobic events using these amenities. Employees can also freely take part in various activities and courses organized by the company’s relevant clubs to enrich themselves by taking up new hobbies while promoting their physical and mental health.
▲ SNI’s gym was inaugurated and opened on ▲ The gym features numerous fitness training January 19, 2018 equipment and a dance classroom
Comprehensive Benefits and Responsibility Dual-Track Compensation System
In addition to the labor insurance that is mandatory as stipulated by the Labor Insurance Act, out of the company’s concern for safeguarding labor rights, we have also planned a comprehensive benefits and responsibility dual-track compensation system through commercial insurance planning in order to ensure that we will fulfill our obligations as the employer for all employees suffering from work injuries or occupational illnesses/deaths to be adequately protected by occupational hazard insurance and group insurance. The insurance coverage will enable employees to enjoy more adequate financial and medical aid in the event of occupational injuries while preventing unwanted labor-management conflicts and unnecessary waste of social costs.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Education, Training and Attracting Talents Here at SNI, we perceive talent cultivation to be one of the most important tasks to secure competent human resources as a company. Apart from emphasizing employee education and training, we also take future development of talents seriously; in addition to further strengthen employees’ competence and occupational skills, we will also take steps to improve the management’s leadership and management capabilities. For our suppliers, we will carry out non-periodic audits and find out our suppliers’ compliance with accepting trainings through interviews with employees or their responses from their self-evaluation forms. Education and Training SNI values the cultivation of talents and has established a training system for the company to provide training for employees and staffs of different job grades and positions to bolster their professional skills, management skills and so forth, thereby further boosting their vocational capacities. SNI’s philosophy of learning and development involves the construction of manpower “assets” through manpower “resources” to ensure outstanding operational performance for the company. Our planning for education and training is based on the company’s various strategies with the goal of creating a holistic environment for employee growth through our promotion of key projects and training system, which would in turn help the company to achieve its performance targets. We are committed to help employees enhance their competence through cultivation of professional skills and techniques whilst acquiring diverse knowledge and more sociable attitudes and mindset to become the talents that SNI values. SNI’s training system: In an effort to improve employees’ Knowledge, Skills and Attitude (KSA) and competence so that they will be able to complete the tasks they have been assigned, we have established a training system with the following components: orientation training, professional training, tiered training, project courses, self-development, core-competence and general education. (1) Orientation training: training to help new employees acclimatize themselves with the company’s work environment and ease into SNI’s culture. (2) Professional training: Training to help employees cultivate expertise in their work and compliance with pertinent regulations, thus making employees more competent in their work while encouraging them to pass on their know-how to other employees in the company to consolidate the company’s foundations. (3) Tiered training: trainings to assist managers at different levels to improve their management and leadership capabilities. These trainings include management trainee course, fundamental training for managers and manager seminars designed to nurture outstanding managerial staff. (4) Project courses: Our internal trainer training is designed to help the company train outstanding internal seed trainers. (5) Self-development: Trainings to help employees strengthen their language skills and secondary expertise, including language courses, self-learning with Microsoft Office along with various other seminars that emphasizes self-growth, self-learning and work management. (6) Core competence and general education course: Courses to help employees build the right attitude towards work and consensus with the team in order to achieve their given targets through communication and cross-function, cross-departmental collaboration so as to quickly respond to specific needs. Courses include: Corporate culture, problem analysis and intellectual properties.
Each year, the Human Resource Section is responsible for drafting the “Annual Training Plan” for the entire company based on factors including the company’s objectives, human resource strategies, actual needs of each units and so forth in the hopes that our employees will be able to continue to strengthen their vocational skills through courses organized by various units or the company. SNI will continue to monitor the status of implementation (achievement rate and effectiveness) for each monthly plan through monthly performance analysis. Through our annual plans and the actual results achieved, we will be able to determine the status of achievement for the plan of the year in order to facilitate the formulation of the plan for next year. From 2019 onward, SNI will be setting specific duration of training for different employee categories (i.e. managerial personnel, indirect and direct personnel) each year. We plan to increase the total training duration for all employees to 6Hrs or more each year by 2020. Achievements and Recognitions
Each year, SNI will organize and hold its strategic planning workshop in order to formulate corporate level strategies to be promptly deployed to all responsible units. As learning and development help to ensure SNI achieves its corporate level strategic goals, their promotion will serve as key indicators for relevant trainings. In 2017, we held 128 sessions, with a total of 1,608 participants taking part in various courses. SNI invested approximately TWD 1.7 million as the cost for relevant training. Contents of our training include R&D, management, manufacturing processes, environment and safety, PC, quality, legal affairs and other miscellaneous courses. With our overall planning for training, we were able to apply for subsidy for “Assisting Enterprises Program to Upgrade Human Resource” from the Vocational Training Center. We received approximately TWD 263,120 in subsidy, which helped the company to save relevant costs while improving our human resource quality and enhance our training effectiveness.
Average no. of training hours for employees Unit: hour/person
2015 2016 2017 Item\Year All Male Female All Male Female All Male Female
All employees 5.43 8.68 3.27 6.69 10.71 3.76 3.00 4.19 2.05 Managerial personnel 9.42 10.12 7.33 16.57 16.60 16.47 5.77 6 6.44 Non-managerial personnel 8.65 8.99 8.10 9.39 9.81 8.62 4.11 4.19 3.98 Operators (hour/person) 1.05 2.55 0.92 0.92 3.08 0.71 0.82 0.94 0.81
Note: Managerial personnel refers to section chief and higher ranking supervisors (excluding project leaders); non-managerial personnel refer to employees who are not managerial personnel or operators.
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P55 Tidbits from our trainings
▲ Corporate internal trainer training course ▲ Facebook LIVE stream international trading ▲“Hand-brewed Coffee for SNI people” workshop channel practices seminar
▲ How to identify local/foreign organic food ▲ Weekly RD Seminar – Tech Trend Forum ▲ “Information Session on Income Tax certifications Declaration and Tax Planning”
Accreditation to the TTQS Evaluation In August 2017, SNI’s Human Resource Section participated in the Talent Quality-management System (TTQS) Guidance Plan organized by the Workforce Development Agency. The training involved adopting TTQS’ evaluation standard to assess SNI’s status of human resource training in order for the company to resolve any aspect of inadequacies so that SNI could meet the requirements for TTQS, thereby making the company’s education and training system more complete. Not only that, we also participated in the evaluation held on October 25, 2017 to examine the outcome of the training and the score SNI received was higher than the threshold to meet the basic requirements as laid out by the Workforce Development Agency. In the future, SNI will refer to suggestions from the assessment to formulate improvement plans in order to facilitate continual improvement in the quality of our training system.
Employee Performance Evaluation
Here at SNI, we perceive talent cultivation to be one of the most important tasks to secure competent human resources as a company. Apart from emphasizing employee education and training, we also take future development of talents seriously. All SNI employees are subject to routine competence development assessment. Every year, all SNI employees have to go through two performance evaluations. Employees will be evaluated by their supervisors based on factors such as target completion rate, status of implementation for specific tasks, four work behavior management and contributions, work behavior development plan and so forth. In terms of performance improvement follow-up, for employees that received unfavorable performance ratings (B or C), direct supervisors are responsible for carrying out “performance feedback interviews” to follow-up on the outcome of improvement, which ought to be reported for the Human Resource Unit to handle in accordance with SNI’s “Performance Evaluation Management Procedure”. In order to facilitate efficient completion of performance review operations and prevent unnecessary waste of resources, SNI has completed the E-process for its performance evaluation to enable supervisors to carry out performance reviews through the company’s online evaluation system. As for employee promotion, SNI has been assessing employees’ performance at work through routine evaluations and actively encouraging employees to optimize their values. All of our employees enjoy equal opportunities for career development.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Attracting Talents
SNI has engaged in personnel recruitment activities for various positions based on the company’s actual need for manpower. Apart from conventional channels such as our company website, recruitment website and local employment service stations, we have also been carrying out campus recruitment and relevant technical seminars at different universities and colleges in order to promote SNI’s product and technical developments. In addition, we have also held research and development substitute service enlist recruitment and recruitment at military establishments as ways to attract young talents from other parts of the society.
Human Rights Training for Security Personnel Considerations for human rights protection have also been included in the training for SNI’s security personnel. Apart from promoting and strengthening relevant standard trainings on legal affairs, plant regulations, fire safety, emergency response capability drills and traffic safety advocacy, we have also implemented human rights training for our security personnel in order to help them foster the concept of respecting all employees’ human rights.
Employee Communication and Care Here at SNI, we have established a number of internal communication platforms and channels, such as our Employee Welfare Committee, Labor- Management Meeting and various seminars that enable us to understand and respond to the opinions and suggestions for improvement from our entry-level employees in a timely manner. Apart from strengthening our internal communications, we have also utilized these channels to convey the company’s operational status and direction of development in order to ensure accurate and prompt delivery of company information as we strive to provide more employee benefits that are superior to the legal requirements. Internally, we have setup a physical suggestion box as an obstacle- free channel for employees to voice their thoughts and opinions. It enables the company to quickly and thoroughly understand employees’ needs and suggestions, which we would accept whenever feasible as a way to show that the company is on the side of its employees. SNI has always perceived employees to be the greatest asset of the company and has therefore gone at great lengths to provide comprehensive care for their health. Firstly, we have created a healthy work environment and carried out routine inspections at the sites to improve the work environment and prevent the occurrence of occupational illnesses. Not only that, we also take the physical and mental well-being of employees and communication with them seriously by offering professional medical consultation and psychological counseling services in order to find out and listen to their true needs. In addition, we have also promoted the concept that “prevention is better than treatment” and organized relevant health promotional activities. Through our comprehensive employee health management system, we were able to construct a complete database of employee health in order to improve our health management performance. These efforts are necessary as we believe that our employees must be physically and mentally healthy in order to help them attain better attitude towards work, which will indirectly boost the company’s competitiveness. Channels of Communication We have been organizing seminars for employees at different levels on a regular basis in the hopes of listening to employees’ suggestions on how the company can improve through transparent, bi-lateral communication as we respond to the feedbck and inquiries of employees and thereby improve our overall operational efficacy. Each year, we would assess the company’s status and direction of operation in order to adjust our communication models with internal employees to ensure consistent, open, rapid and accurate delivery of relevant company information.
Table of Employee Communication Channels
Aspect of Target of Name Method Frequency communication communication Management meeting for senior Division manager and Division managers and higher ranking staff are called upon to discuss and Once/week managers higher ranking staff communicate on the company’s strategic directions. Supervisors will announce the company’s policies and objectives to Once/ Department meeting Department employees Company policy department employees and examine the status of target achievement month (Mostly on the Labor and management Once/ advocacy of the Labor-Management Meeting Discussion of related issues at the Labor-Management Meeting. representatives quarter company’s policies Human Resource/General Affairs personnel will directly communicate with all and management times/ Foreign employee seminar Foreign employees SNI’s foreign employees to announce relevant company policies and address objectives) month issues that our foreign employees have brought to our attention. Human Resource personnel will directly communicate with all cooperative Cooperative Education Student Cooperative education times/ education students to announce relevant company policies and address Seminar students month issues that the students have brought to our attention. Once/ Human Resource Heads-up All employees e-mail Welfare and benefits quarter (Mostly on the Non- announcement SNI Perks Net All employees e-mail of the company’s periodic Welfare committee under Non- welfare policies and Employee Welfare Committee Discussion on various employee benefit related affairs relevant internal various departments periodic announcements on HR PORTAL –Human resource Non- All employees e-mail human resources) service section periodic Physical suggestion box All employees A physical box for suggestion submission At any time
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P57 Employees’ Suggestion Mailbox
SNI’s concern for its employees is evident from the various obstacle-free communication channels that the company has provided for all employees. Internally, the company has established a dedicated complaint mailbox for employees in order to achieve immediate response to grievances. In 2017, there were four instances of complaints submitted through the mailbox and the company had responded promptly to employees’ feedbck and resolved their issues. In addition, in an effort to protect employees from sexual harassment in the workplace, we have also established our Sexual Harassment Prevention Procedure and grievance mechanism on top of routinely reiterating the company’s stance on safeguarding ▲ SNI’s sexual ▲ SNI’s suggestion box offers a mechanism for prompt employees from the threats of sexual harassment. harassment prevention responses to employee inquiries and feedbck. poster and promotional handbook. Safeguarding Employees and Labor Agreement
SNI respects and protects employees’ freedom of association and collective bargaining by providing a transparent channel for interaction and exchange in order to ensure employees’ opinions or inquiries can be handled promptly. In addition, we also hold our labor-management meeting once every three months with HR Department supervisors attending relevant meetings to promote labor-management harmony. At the labor- management meetings, labor related issues, such as labor safety, education and training, compensations for disasters/hazards/illnesses, benefits are discussed and presented in order to protect relevant employee rights.
Establishment of Shortest Period of Notice for Change in Labor Service
To safeguard all employees’ rights to employment, SNI has complied with government regulations by explicitly stating the period of notice for change in labor service in our labor contracts. More specifically, in the event of significant changes to the company’s operation that could affect employees’ rights, the company is obligated to inform employees who have served for more than three months but under a year ten days prior to the change; for employees who have served for more than one year but under three years, the company will inform them regarding change in their service 20 days prior and for employees who have served more than three years, the company will inform them regarding change in their service 30 days in advance.
Employee Retirement Plan
A sound retirement system will enable employees to make suitable career planning and provide basic protection for their retirement life by considering factors such as their seniority and age in their retirement planning. Employees are entitled to submit their application for retirement in advance as SNI has established comprehensive employee retirement procedure to remit monthly pension fund pursuant to domestic regulations and regulations that are applicable in the region where our offshore branches are located as the company’s way of caring for our employees in their retirement.
‧ For Taiwan: Pursuant to the Labor Pension Act promulgated on July 1, 2005, SNI has been allocating 6% from the monthly wages of new employees and other employees for whom the Act is applicable as labor pension fund to their personal account under the Bureau of Labor Insurance. In the old contribution system, the company would allocate 2% of employees’ total salary on a monthly basis to the designated account managed by the Supervisory Committee of Labor Retirement Reserve at the Bank of Taiwan in order to cater to employees who prefer the old retirement pension system.
Old/New Labor Pension System Unit: in TWD 1,000
Item\Year 2011 2012 2013 2014 2015 2016 2017
New system-pension (recognized pension cost) 19,165 21,428 23,867 26,851 30,749 31,392 34,165 Old system-Pension (present value of a defined 33,367 29,331 35,470 32,288 34,402 36,371 38,527 benefit obligation)
‧ Retirement system: Through a sound retirement system, the company will be able to facilitate the alternation of old and new employees, succession plan and talent cultivation. SNI has also planned relevant seminars specifically for employees who have met their retirement requirements and these include financial management, retirement life and so forth to help employees benefit from greater financial freedom and healthy lifestyle for quality retirement life – a prime time for traveling and other ways of enjoying life as seniors. We have scheduled to complete relevant planning for pre-retirement transitional training (i.e., seminars on financial management, taking up new hobbies and so forth) before 2020 in order to help retiring employees enjoy fulfilling and diverse retirement lifestyle.
SNI will continue to plan for a better retirement system for employees by: (1) Examining the list of employees due for retirement each year and send out reminders to employees approaching their retirement to be prepared in advance while the company proceeds with relevant human resource and successor training. (2) Organize non-periodic seminars on financial management, life after retirement and travel planning to help employees benefit from greater financial freedom and enjoy their retirement life.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Healthcare
Here at SNI, we have setup an infirmary for employees and hired physicians and specialists to provide immediate and professional medical services and consultations. Apart from organizing routine health checkups, we have also been inviting experts in different disciplines to host talks and seminars in order to provide comprehensive care to our employees. We have also setup spacious and adequately renovated lactation rooms with relevant privacy protection in addition to designated parking spaces for employees in pregnancy as part of our thoughtful perks for employees.
▲ SNI’s lactation room is spacious and ▲ Isolated lactation room with adequate privacy adequately renovated protection
Pursuant to specific regulations that require Item\Yea 2014 2015 2016 2017 the company to adopt health monitoring rating No. of employees who received management system, SNI organizes annual special 442 513 629 544 and general health checkup for our employees by health checkup (person) inviting physicians of Occupational Medicine from Special health checkup (person) 5 5 7 5 Taiwan Adventist Hospital (TAH) to provide health Psychology seminar (session) 0 1 1 0 consultation services at our plants to impart health Health seminar (session) 2 2 3 2 related knowledge and general knowledge while ensuring that employees can receive adequate medical Nutrition course (session) 2 1 0 0 care. Ergonomic engineering (session) 0 0 0 1 Note: Special health checkup: Health care measure provided specifically to employees working in designated areas with ionizing radiation exposure.
Major healthcare related events organized by SNI in 2017 include:
Workplace Health Promotion Seminar – “Sleep Disorder”
The primary function of sleep is to help one to recover the energy spent in various activities carried out in daytime in addition to adjusting and re-organizing one’s emotional behaviors and cognitive memories. Having quality sleep has a huge impact on one’s performance at work and learning during the daytime; when a person suffers from chronic sleep deprivation, he could be susceptible to deteriorating memory and mood swings, not to mention negative impact on his immune systems that could make him catch the flu or become sick more easily. We have invited health promoter from TAH to speak to our employees on the symptoms of insomnia and potential causes for it in order for employees to learn ways they could adjust their lifestyles and daily routines to effectively tackle issues that may be impeding their sleep.
Workplace Health Promotion Seminar – “Lower Back Pain – Recognition and Prevention of Hazard”
According to relevant surveys, as much as 50-80% of the population has previous experience with lower back pain. There are many causes to lower back pain, such as poor posture, aging, spinal disc herniation, and even organ diseases or tumors can trigger lower back pain. Thus, we invited the chief of Choninn Hospital’sPromotional Department to speak to our employees on the symptoms and causes for lower back pain and share tips on work environment adjustment and correction of poor habits while reminding us that prevention is better than the cure. The goal of the seminar is to spare all employees from the ailments of lower back pain and prevent it from happening.
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P59 Workplace Health Promotion Seminar – “First Aid for Burns and Scalds”
It is likely that one may encounter or suffer from burn or scalding injuries at sometime in their life. And as such, we have invited the chief of Choninn Hospital’sPromotional Department to speak to our employees on the ways to prevent burns and scalding and the proper first aid techniques so that in the event of such injuries, they will be able to administer the proper first aid treatment to protect the wounds from being subjected to secondary injuries.
SNI received the Badge of Accredited Healthy Workplace from the Health Promotion Administration, Ministry of Health and Welfare.
Ever since SNI received the Badge of Smoke-free Workplace from the Health Promotion Administration in 2015, the company has continued to improve upon its health promotion plan by launching relevant workplace health promotion activities. In addition to having physicians at our plants to provide health services and consultations, SNI has also been organizing routine workplace health promotion courses while continuing to keep our workplace smoke- free. In 2017, SNI was verified by the Health Promotion Administration to be eligible for the Badge of Accredited Healthy Workplace and we are tremendously grateful to the panelists for awarding the badge to the company.
Occupational Hazard Prevention We at SNI are well aware of the fact that corporate management is not just about making profit; the prevention of occupational hazard is just as important. We have endeavored to provide a safe and quality working environment to our employees because we know that proper safety and hygiene management is fundamental to the company’s sustainable operation. Guided by our spirit of continual improvement, we have promoted the accreditation of our manufacturing plants to existing ISO 14001/OHSAS 18001 EHS systems while encouraging our employees to submit relevant proposals in the hopes that all our employees will be able to work safely at our premises so as to achieve our target of zero hazards at our plants. In addition, with regards to the latest amendments to the Occupational Safety and Health Act that provided details on the management of machinery equipment and chemicals (Registration and Reference of Restricted Chemicals and Chemicals for Priority Management), health management (prevention of ergonomic hazards, work load management, prevention of hazard to maternal health) and the revision on relevant compensations, SNI will be taking relevant measures to make corresponding improvements in accordance with the amendments.
Policy Communication SNI’s EHS policy shall be effectively conveyed and presented to relevant stakeholders through the following means:
‧ Put up relevant posters at various entrances and exits for plant personnel ‧ Assistance in relevant promotion by the Labor Safety and Health Committee under each unit ‧ Facilitate and promote our EHS policy through relevant trainings and activities ‧ Convene contractor safety and health promotional meeting and organizational meetings to present, promote, communicate and coordinate in accordance with our policies. ‧ Promotion on our corporate website and intranet
EHS Management Systems
Both SNI’s Hua Ya Plants have been accredited to ISO 14001/OHSAS 18001 systems and through approaches for continual improvement, we were able to improve our performance in safety and health as our means of protecting employee and company assets. SNI has trained dedicated personnel to be responsible for the management of ISO 14001/OHSAS 18001 system operations and performed routine internal audits through our EHS system to review our system promotion and identify aspects where we could improve upon to enhance the efficacy of relevant system operations so that the company could achieve its goals of environmental protection and hazard prevention. SNI has established its EHS Committee at the Hua Ya Plants and members consist of labor and management representatives that have been elected. The committee is responsible for formulating, coordinating and monitoring environment/safety/health related measures implemented at the company level. The number of labor representatives constitutes approximately 1/3 of the total number of committee members.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 EHS Promotional Area Ratio of Labor Representative in the EHS Committee SNI has established a dedicated intraweb page for employees to perform EHS related inquiries. The section also provides information Item\Year 2015 2016 2017 on the latest events, the database and instructions on using the Total number of committee 22 22 22 E-system. Featuring user-friendly designs, our employees will be able members (person) to find the information they need. This platform also serves as a shared No. of labor communication and exchange platform for EHS information between 9 9 10 representatives (person) different plants. Ratio of labor 41 41 45 representatives (%)
▲ Dedicated intraweb page for EHS related inquiries ▲ E-EHS Document Management System
In 2017, SNI continued to promote the optimization of its safety and health management system. Our notable safety and health events include: Plant-wide emergency response and evacuation drill: We have established specific response procedure and implemented total employee participation to optimize relevant employee training. Through actual drills, we were able to review our existing processes and seek ways to improve our procedure in order to ensure smooth evacuation and response in the event of contingencies at our plants.
Emergency response related trainings Unit: person
Item\Year 2015 2016 2017
Fire safety exercise 138 138 154
Emergency response commander 16 16 16
Emergency response team 138 138 154
Emergency response drill 138 138 154
Installation of Spill Prevention Tank for Chemicals After specific risk assessments, we found that when it comes to the packaging of chemicals into smaller containers, there is a significant chance of bottle/container topping or spilling. Preventive measure: we have made it mandatory for personnel to perform relevant repackaging of chemicals in simple spill prevention tanks. → Image of our spill prevention carton where our production line operators carried out actual repackaging operations.
Create a LOHAS working environment to boost employees' feelings of cohesion and well-being P61 Safety and Health Performance SNI takes the improvement of its safety and health performance very seriously and through means of risk assessment, we were able to manage and improve upon our high-risk areas and operations. We were meticulous and prudent when it comes to any change in management requirements in order to promote our safety culture by having all employees appreciate the importance of safe operations. In addition to routine inspections and audits at our plants, through our continual effort in the promotion of safety culture, SNI’s frequency rate of occupational hazard (excluding traffic accidents) leading to disabling injuries in 2017 was 0; our severity rate was also 0, thus putting our Frequency-Severity Indicator for the year at 0 as we had no fatal accidents nor occupational illnesses in 2017. In the future, we will continue to strength various safety operation promotion and management at all plants to prevent the incidence of disabling injuries.
Table of Safety and Health Performance
Item\Year 2015 2016 2017
All Male Female All Male Female All Male Female
Frequency rate 1.608 1.072 1.93 1.618 0 2.65 0 0 0
Severity rate 6.03 6.43 5.79 5.259 0 8.613 0 0 0
Frequency-Severity 0.098 0.083 0.106 0.092 0 0.151 0 0 0 Indicator Note 1: Frequency rate (FR)= (No. of injuries ×106)/Total number of hours worked by all employees. Note 2: Severity rate (SR)=(Total no. of lost work days ×106 )/Total number of hours worked by all employees . Note 3: Frequency-Severity Indicator (FSI)= (Frequency rate (FR) x Severity rate (SR)/ 1000)^0.5.
Absentee rate Unit: %
Item\Year 2015 2016 2017
All Male Female All Male Female All Male Female
Absentee rate 1.18 1.29 1.11 0.98 1.06 0.91 0.89 0.74 1.00
Absentee Rate (AR) %=(Total number of missed days over the period / Total number of workforce days worked for the same period) x 100% Note: the calculation of AR includes sick leaves, days of occupational injury leaves and special leaves
Contractor Safety and Health Management For specific constructions and equipment maintenance operations, SNI has entrusted the tasks to contractors with instances of working together with them. Our implementation of safety and health management not only applies to our employees but also to our contractors. SNI has established its Contractor Operation Management Regulations as a means to ensure operational safety for contractors and prevent incidents of occupational hazards or environmental pollutions while safeguarding the safety and health contractor personnel and SNI employees and keeping our equipment and facilities intact. SNI had no incident of disabling injury in 2017.
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Bringing employees together for community service Creating richer communities
In 2016 In 2017 We assisted disadvantaged we set up a we held the SNI groups to fulfill massage Flea Market our social station responsibility
SNI cares a great deal about the society and has been actively giving back to the society and local communities by taking the initiative to listen to the voices and needs of stakeholders and working hand in hand with our employees to take part in social charity and community events. By doing so, we integrate ourselves into community development and promote harmony and environmental education. Internally, we help employees cultivate concepts of green lifestyle and advocate the importance of environmental education and environment maintenance; externally, SNI promotes community culture, environmental protection and preservation of natural ecologies in order to facilitate healthy and eco-friendly lifestyles in the community and heritage of culture to ensure mutual growth for SNI, our employees and communities as we fulfill our corporate social responsibilities.
Integration into Local Communities and Participation in Charity Events As the Chinese idiomatic expression says: “Neighbors are dearer than distant relatives”, SNI has stayed true to its obligations as a social citizen and spared no efforts in its promotion of community care. Apart from encouraging our employees to offer help to those in need, we firmly believe in the humane philosophy of “empathizing with the hungers and suffering of others” and have thus been doing our best to assist and care for disadvantaged minorities by championing the ideals of “giving back to the community in whence we have taken from” as we bond with our neighbors. In 2017, SNI called upon its employees to facilitate the development of local cultures, promote spiritual purification and environmental education in addition to offering aid to impoverished residents in dire need of aid and providing job opportunities to disadvantaged minorities. By actively participating in various charity events, we were able to contribute to the cause of caring for the society. Promoting employment opportunities for the physically impaired As part of our efforts to fulfill our corporate social responsibilities, SNI has responded to the government’s “1+1 Employment Assistance Program for the Physically Impaired” by focusing on the creation of job opportunities for the disadvantaged minorities by offering 9 job openings to employees with physical/mental impairments in 2017. As a thoughtful gesture to help employees unwind from the stresses of their day-to-day work, SNI has established its complimentary “Massage Station” at its Hua Ya Plants in August 2016, and later offered the same massage service at its Taipei R&D Center starting in January 2017 by hiring two visually- impaired massage therapists to be stationed at the two facilities. Between January and December 2017, the two massage therapists served a total of 920 employees and 677 employees at Hwa Ya Plant and Taipei R&D Center respectively. The arrangement not only enables employees to take advantage of this service by taking a break from their work but also offers more employment opportunities to those with physical/mental disabilities. In the future, we will continue to promote relevant initiatives so as to create openings that are suitable for those with physical/mental impairments.
Hua Ya Plants - Service provided by visually impaired massage therapist in 2017
Month January February March April May June July August September October November December Total No. of employees 70 40 99 76 82 81 77 85 83 67 80 80 920 served (person)
Taipei R&D Center – Service provided by visually impaired massage therapist in 2017
Month January February March April May June July August September October November December Total No. of employees 66 49 77 38 46 36 30 76 72 56 65 66 677 served (person)
Bringing employees together for community service Creating richer communities P63 Participation in social and charity events
Donation of 150kgs of rice to Reindeer Children’s Home
Guided by our philosophy of caring and actively giving back to the society and local communities, SNI has utilized its existing resources to help organizations of disadvantaged minorities. On September 8 2017, Assistant VP Zhang Ming-Dao donated 150kgs of rice on behalf of the company to Reindeer Children’s Home. In the future, the company shall continue to adhere to its spirit of “empathizing with the hungers and suffering of others” by helping more disadvantaged minorities as its way of fulfilling corporate social responsibilities.
Promotional events for merchandize from disadvantaged minority associations and social enterprises
In 2017, SNI organized special product promotional events during the Chinese New Year holidays, Dragon Boat Festival and Mid-Autumn Festival by inviting disadvantaged minority associations and social enterprises to set up booths at the company and offer products they have made so that they could become self- sufficient without having to rely to others. These promotional events provided additional options for employees in their shopping and preparation for various festivals with the offering of products while enabling our employees to contribute to the cause of philanthropy by helping those in need of aid and thereby become champions of SNI’s spirit of caring for the disadvantaged and promoting charity.
Rice Dumplings for Dragon Boat Festival
▲ LOHAS workplace ▲ Happy Stray Dog Shelter ▲ Yummy Time
▲ Anxin Care Association ▲ Toxin-free farming
Mid-Autumn Festival Fair
▲ Daan Sheltered Farm ▲ Jixian Sheltered Farm ▲ Dadan Workshop
Senao Networks, Inc. Corporate Social Responsibility Report 2017 Green Collar Training – Environmental Education Activities
SNI’s Flea Market in 2017
In response to the EPA’s promotion for environmental protection, SNI launched its “Love and Cherish Resources by Recycling – Embrace a Greener New Year” campaign and encouraged employees to carry out spring cleaning during the new year holidays; for employees with any items and products in mint condition but have been unused for extended period of time at home, SNI organized four Flea Market resource match-making events on February 14, 16, 21 and 24 in the spirit of “One’s unwanted items may be treasure to others”. Through this platform of sharing, employees would be able to sort and gather 2nd hand items that haven’t seen much use at home to be given to new owners who may have need for said items with match-making, thereby giving new lives to these unused items and creating cyclic use for 2nd hand items. With the enthusiastic participation from employees, we were able to achieve over 80% in match-making for 2nd hand items with new owners. On a related note, the platform was designed to have two components – sales and donations. For the TWD 1915 donated by employees, the proceeding was donated to Reindeer Children’s Home in the company’s name on March 13.
“CSR Celebrity Seminar” Green Innovation – A Seminar on the Growth of Enterprise
On April 7 2017, SNI organized its Green Innovation – A Seminar on the Growth of Enterprise by inviting Steven Ko – the founder and chairman of Hair O’right International Corp (a benchmark Taiwanese green enterprise) to share with us his philosophies of green innovation. Mr. Ko has been suffering from depression due to the loss of his parents but with the encouragement of his physician, he set out to do what his late father once told him: “If you ever attain success one day but your parents are no longer around, you can still show your filial piety by contributing to our country and society”. And by setting his mind towards this goal, Mr. Ko no longer suffers from his depression. Due to his allergies, Mr. Ko has also been having issues with asthma and it has inspired him to devote himself to the development of eco-friendly shampoo products. Driven by his passion to contribute to the country and society and his insistence on being environmental friendly, all of Hair O’right’s products are fully eco-friendly, right from the choice of raw materials, R&D, design, manufacturing and marketing in all details. It is such perseverance that has brought international fame and renown to his company, which has received numerous awards. Such resolve in contributing to our nation and society and insistence in environmental protection is certainly something SNI could learn from.
Bringing employees together for community service Creating richer communities P65 Employee Care and Social Charity Events
SNI Strikes with Impeccable Execution Year-End Banquet (Year-End Party)
With the theme of “SNI Strikes with Impeccable Execution”, the company’s year-end banquet was held on February 3 2018 at NTU Sports Center. The event served as an important function for the company to commend hardworking employees by presenting them with Employee Role Model awards along with other activities such as the year-end raffle and relevant performances as SNI’s way of thanking employees for the hard work and diligence they have demonstrated in the past year so as to boost employee cohesion and their passion for work. SNI has also invited customers, suppliers, board members and other guests to attend the banquet in order to strengthen our bonds with these stakeholders. Not only that, we have also presented trophies of customer appreciation and received trophies for being our customers’ best supplier at the event. SNI deeply appreciates the support from all our stakeholders and we look forward to closer collaboration in the future as we attain greater growths in our sales. SNI has never forgotten to give back to local communities in our pursuit for profit in our operations. Starting from 2013 onward, we have been inviting different disadvantaged minority groups to take part in our year-end banquets and for 2018, students from Huei-Ming School in Taichung attended our banquet and brought exciting performance for the attendees. Together with our suppliers, SNI donated a total of TWD 250,000 to charity as part of our fulfillment of corporate social responsibilities. During the conclusion of the banquet, we thanked our all partners for being there for us along our journey as we bade fairwell to 2017 and continued on towards 2018 in the hopes of achieving greater success in the year to come.
▲ Members of our senior management donning ▲ Opening performance by section chiefs and ▲ SNI and its suppliers donated a total of TWD the costumes as SNI’s Team of Agents supervisors 250,000 to charity Employee Care Activities
SNI Theater
In June and August 2017, the company organized the SNI Theatre event for movie appreciation by making use of the company’s existing audio and video equipment. It was a thoughtful gesture for our supervisors and employees by saving them the hassle of going to the cinemas and money from buying movie tickets. Employees were offered a number of titles from which they would vote to be featured during the event. This enables our supervisors and employees to enjoy a moment of respite from their work while creating common topics of dialog for them, thereby boosting their team work.
Company Trip
Organized by our Employee Welfare Committee, SNI held its annual company trip on May 6 2017 as our way of extending our employee care to their families so that they can enjoy quality time with their families while focusing on their work. Each year, SNI organizes company trips intended for employees and their families with the mission of delivering fun and happiness to all employees. This reflects our emphasis of harmony and balance between employees’ lives at work and at home. From the degree of enthusiasm shown by our employees in their participation of our company trips, it is evident that SNI has achieved considerable success in providing adequate employee benefits and facilitating family values for its employees. For 2017, SNI’s company trip provided five different destinations and packages (Tung blossom flower viewing in Miaoli, Visit to Nanzhuang in Miaoli, Visit to Lugang in Changhua, Clam harvesting in Changhua and Visit to Hsiao Liuchiu Island) with specific activities planned for each. The packages integrated specialty local features and experiences for employees to choose from based on their own preferences. Hopefully through our company trips, employees will be able to relieve stress from their work while strengthening their bonds with family members and in turn cultivate higher degree of recognition and satisfaction for the company.
▲ Nanzhuang, Miaoli County ▲ Lugang, Changhua County ▲ Hsiao Liuchiu Island
Senao Networks, Inc. Corporate Social Responsibility Report 2017 GRI G4 Index
General Standard Disclosures
External Standard Description Section Page/Remarks guarantee page Disclosures number Strategy and Analysis Provide a statement from the most senior decision-maker of the organization about the relevance of sustainability to the G4-1 A word from the Chairman, Management Philosophies 4, 7 72 organization and the organization’s strategy for addressing sustainability. Risk management, Water Resource Management, G4-2 Provide a description of key impacts, risks, and opportunities. Environmental Risk Evaluation and Communication, 25, 34, 35, 36 72 Waste Resource Management Organizational Profile G4-3 Report the name of the organization. Senao Networks, Inc. 2 72 G4-4 Report the primary brands, products, and services Product Overview 10 72 No. 500, Fuxing 3rd Road, Guishan District, Taoyuan G4-5 Report the location of the organization’s headquarters 3 72 City Report the number of countries where the organization operates, and names of countries where either the G4-6 Global Deployment 14 72 organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. G4-7 Report the nature of ownership and legal form Shareholder Structure, Board of Directors operation 13, 16 72 G4-8 Report the markets served Global Deployment 14 72 Financial Performance, Overview of Employees around G4-9 Report the scale of the organization 12, 48 72 the World Report the total number of employees by employment contract G4-10 Overview of Employees around the World 48 72 and gender. 58 No employee unions Report the percentage of total employees covered by were established nor had G4-11 Safeguarding Employees and Labor Agreement 72 collective bargaining agreements. any agreements of collective bargaining been signed. G4-12 Describe the organization’s supply chain. Supply Chain Overview 45 72 Report any significant changes during the reporting period G4-13 regarding the organization’s size, structure, ownership, or its Reporting Principles 2 72 supply chain. Report whether and how the precautionary approach or Audit Office, Development of eco-friendly products and G4-14 19, 38 72 principle is addressed by the organization promotion of green sustainable value chain List externally developed economic, environmental and GHG Inventory Disclosure, Promotion of Electronic G4-15 social charters, principles, or other initiatives to which the Industry Citizenship Coalition (EICC), Human Rights 32, 46, 52 72 organization subscribes or which it endorses. Protection Taiwan TFT LCD Association, Taipei Computer Association, Taoyuan City Industrial Association, Bluetooth List memberships of associations and national or international Special Interest Group (SIG), G4-16 72 advocacy organizations in which the organization Wi-Fi Alliance (WFA), Dun & Bradstreet, Open Network Video Interface Forum (ONVIF), Open Compute Project (OCP) Identified Material Aspects and Boundaries List all physical entities/organizations/units covered in the Reporting Principles, Organizational chart for affiliated G4-17 organization’s consolidated financial reports or equivalent and 2, 15 72 businesses state whether there are parts not included in this report a. Explain the process for defining the report content and the Aspect Boundaries G4-18 Selection of Material Considerations 22 72 b. Explain how the organization has implemented the Reporting Principles for Defining Report Content List all the material Aspects identified in the process for G4-19 Selection of Material Considerations 22 72 defining report content For each material Aspect, report the Aspect Boundary within G4-20 Selection of Material Considerations 22 72 the organization For each material Aspect, report the Aspect Boundary outside G4-21 Selection of Material Considerations 22 72 the organization. Report the effect of any restatements of information provided G4-22 None 72 in previous reports, and the reasons for such restatements. Report significant changes from previous reporting periods in G4-23 Reporting Principles 2 72 the Scope and Aspect Boundaries. Stakeholder Engagement Provide a list of stakeholder groups engaged by the G4-24 Stakeholder Engagement 22 72 organization. Report the basis for identification and selection of G4-25 Stakeholder Engagement 22 72 stakeholders with whom to engage. Report the organization’s approach to stakeholder G4-26 Stakeholder Engagement, Channels of Communication 22, 57 72 engagement. Financial Information Disclosure and Investor Report key topics and concerns that have been raised through Communication, Stakeholder Engagement, Channels G4-27 stakeholder engagement, and how the organization has 20, 22, 57, 58 72 of Communication, Safeguarding Employees and Labor responded to those key topics and concerns. Agreement Report Profile G4-28 Reporting period for information provided. Reporting Principles 3 72 G4-29 Date of most recent previous report. Reporting Principles 3 72 G4-30 Reporting cycle Reporting Principles 3 72
GRI G4 Index P67 GRI G4 Index
Provide the contact point for questions regarding the report or G4-31 Reporting Principles 3 72 its contents. Report the ‘in accordance’ option the organization has Reporting Principles, GRI G4 Index, External Assurance G4-32 chosen. Report the reference to the External Assurance 2, 67, 72 72 Statement Report Report the organization’s policy and current practice with G4-33 Reporting Principles 2 72 regard to seeking external assurance for the report. Governance G4-34 Report the governance structure of the organization. Board of Directors operation 16 72 Report the process for delegating authority for economic, Board of Directors operation, Corporate Social G4-35 environmental and social topics from the highest governance 16, 21 72 Responsibility Committee body to senior executives and other employees. Report whether the organization has appointed an executive- level position or positions with responsibility for economic, Board of Directors operation, Corporate Social G4-36 16, 21 72 environmental and social topics, and whether post holders Responsibility Committee report directly to the highest governance body. Financial Information Disclosure and Investor Report processes for consultation between stakeholders and Communication, Corporate Social Responsibility the highest governance body on economic, environmental and G4-37 Committee, Stakeholder Engagement, Channels of 20, 21, 22, 57, 58 72 social topics. If consultation is delegated, describe to whom Communication, Safeguarding Employees and Labor and any feedback processes to the highest governance body. Agreement Report the composition of the highest governance body and G4-38 Board of Directors operation, Remuneration Committee 16, 17 72 its committees. Report whether the Chair of the highest governance body is G4-39 Board of Directors operation 16 72 also an executive officer Report the nomination and selection processes for the highest G4-40 governance body and its committees, and the criteria used for Board of Directors operation, Remuneration Committee 16, 17 72 nominating and selecting highest governance body members. Report processes for the highest governance body to ensure Board of Directors operation, Audit Office, Code of G4-41 16, 19, 20 72 conflicts of interest are avoided and managed. Conduct Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the Board of Directors operation, Remuneration Committee, G4-42 organization’s purpose, value or mission statements, 16, 17, 21 72 Corporate Social Responsibility Committee strategies, policies, and goals related to economic, environmental and social impacts. Report the measures taken to develop and enhance the Board of Directors operation, Remuneration Committee, G4-43 highest governance body’s collective knowledge of economic, 16, 17, 21 72 Corporate Social Responsibility Committee environmental and social topics. Report the processes for evaluation of the highest governance Board of Directors operation, Remuneration Committee, G4-44 body’s performance with respect to governance of economic, 16, 17, 21 72 Corporate Social Responsibility Committee environmental and social topics Report the highest governance body’s role (or function) in the Board of Directors operation, Remuneration Committee, G4-45 identification and management of economic, environmental 16, 17, 21 72 Corporate Social Responsibility Committee and social impacts, risks, and opportunities. Report the highest governance body’s role in reviewing Board of Directors operation, Remuneration Committee, G4-46 the effectiveness of the organization’s risk management 16, 17, 21 72 Corporate Social Responsibility Committee processes for economic, environmental and social topics. Report the frequency of the highest governance body’s review Board of Directors operation, Remuneration Committee, G4-47 of economic, environmental and social impacts, risks, and 16, 17, 21 72 Corporate Social Responsibility Committee opportunities. Report the highest committee or position that formally reviews A word from the Chairman, The chairman, president and G4-48 and approves the organization’s sustainability report and Business Management Department have approved this 4 72 ensures that all material Aspects are covered. report for publishing Financial Information Disclosure and Investor Report the process for communicating critical concerns to the Communication, Corporate Social Responsibility G4-49 20, 21, 58 72 highest governance body. Committee, Safeguarding Employees and Labor Agreement Financial Information Disclosure and Investor Report the nature and total number of critical concerns that Communication, Corporate Social Responsibility G4-50 were communicated to the highest governance body and the 20, 21, 58 72 Committee, Safeguarding Employees and Labor mechanism(s) used to address and resolve them. Agreement a. Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration. G4-51 b. Report how performance criteria in the remuneration Board of Directors operation, Remuneration Committee 16, 17 72 policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives. G4-52 Report the process for determining remuneration. Board of Directors operation, Remuneration Committee 16, 17 72 Report how stakeholders’ views are sought and taken into G4-53 account regarding remuneration, including the results of votes Board of Directors operation, Remuneration Committee 16, 17 72 on remuneration policies and proposals, if applicable Ethics and Integrity Describe the organization’s values, principles, standards and G4-56 norms of behavior such as codes of conduct and codes of Management Philosophies, Code of Conduct 7, 20 72 ethics. Board of Directors operation, Audit Office, Code of Conduct, Financial Information Disclosure and Investor Report the internal and external mechanisms for seeking Communication, Corporate Social Responsibility 16, 19, 20, 20, G4-57 advice on ethical and lawful behavior, and matters related to 72 Committee, Stakeholder Engagement, Channels of 21, 22, 57, 58 organizational integrity. Communication, Safeguarding Employees and Labor Agreement Board of Directors operation, Audit Office, Code of Conduct, Financial Information Disclosure and Investor Report the internal and external mechanisms for seeking Communication, Corporate Social Responsibility 16, 19, 20, 20, G4-58 advice on ethical and lawful behavior, and matters related to 72 Committee, Stakeholder Engagement, Channels of 21, 22, 57, 58 organizational integrity. Communication, Safeguarding Employees and Labor Agreement
Senao Networks, Inc. Corporate Social Responsibility Report 2017 GRI G4 Index
Specific Standard Disclosures
External Standard Description Section Page/Remarks Omission guarantee page Disclosures number
Economic Category Financial Performance, Risks of Climate Change, Employee Economic 12~15, Disclosures on Management Approach (DMA) Retirement Plan, Integration into Local Communities and 72 performance 25, 58, 62 Participation in Charity Events Financial Performance, Integration into Local Communities and G4-EC1 Direct economic value generated and distributed 12, 62 72 Participation in Charity Events G4-EC3 Retirement Plan Employee Retirement Plan 58 72 G4-EC4 Financial assistance received from government Financial Performance 13 72 Market presence Disclosures on Management Approach (DMA) Overview of Employees around the World 48~53 72 Ratios of standard entry level wage by gender G4-EC5 compared to local minimum wage at significant locations Wage Guarantee 52 72 of operation Proportion Of Senior Management Hired From The G4-EC6 Overview of Employees around the World 48 72 Local Community At Significant Locations Of Operation Procurement Disclosures on Management Approach (DMA) Green and Local Purchasing 44~47 72 Practices Proportion of spending on local suppliers at significant G4-EC9 Local Materials 47 72 locations of operation Environmental Category GHG Scope 3 Inventory, Energy management and intensity Energy Disclosures on Management Approach (DMA) 31~33, 40~43 72 analysis, Innovative Material and Technological Development G4-EN3 Energy consumption within the organization Material and Energy Resource Flow Chart 36 72 The information on employee travel had been G4-EN4 Energy consumption outside of the organization GHG Scope 3 Inventory 32 completed, and other 72 projects will be disclosed within the next three years G4-EN5 Energy Intensity Energy management and intensity analysis 33 72
G4-EN6 Reduction of Energy Consumption Energy management and intensity analysis 33 72 Reductions in energy requirements of products and G4-EN7 Innovative Material and Technological Development 40 72 services Water Disclosures on Management Approach (DMA) Water Resource Management 34 72 G4-EN8 Total water withdrawal by source Water Resource Management 34 72 Percentage and total volume of water recycled and G4-EN10 Water Resource Management 34 72 reused
Climate Change Management (Carbon Management), Energy 31~33, Emissions Disclosures on Management Approach (DMA) management and intensity analysis, Innovative Material and 72 40~43 Technological Development, Supplier CSR Promotion
G4-EN15 Direct Greenhouse Gas (GHG) Emissions (Scope 1) GHG Inventory Disclosure 32 72 Energy Indirect Greenhouse Gas (GHG) Emissions G4-EN16 GHG Inventory Disclosure 32 72 (Scope 2)
Related data was not Other Indirect Greenhouse Gas (GHG) Emissions gathered and will be G4-EN17 GHG Inventory Disclosure 32 72 (Scope 3) disclosed within the next three years.
G4-EN18 Greenhouse Gas (GHG) Emissions Intensity GHG Inventory Disclosure 32 72 Energy management and intensity analysis, Innovative Material G4-EN19 Reduction Of Greenhouse Gas (GHG) Emissions 33, 40 72 and Technological Development
Wastewater Treatment, Chemical Management, Resource Effluents and waste Disclosures on Management Approach (DMA) 34, 36, 44 72 reduction and reuse, Supplier CSR Promotion
Wastewater Treatment, Material and Energy Resource Flow G4-EN22 Total Water Discharge By Quality And Destination 34, 36, 44 72 Chart, Supplier CSR Promotion Material and Energy Resource Flow Chart, Resource reduction G4-EN23 Total Weight Of Waste By Type And Disposal Method 36, 44 72 and reuse, Supplier CSR Promotion G4-EN24 Total Number And Volume Of Significant Spills Chemical Management 35 72 Products and Development of Green Products, Product Designs that Facilitate Disclosures on Management Approach (DMA) 40, 41 72 services Reduction in Resource Usage and Easy Recycling Extent Of Impact Mitigation Of Environmental Impacts Product Designs that Facilitate Reduction in Resource Usage G4-EN27 41 72 Of Products And Services and Easy Recycling
Percentage Of Products Sold And Their Packaging Product Designs that Facilitate Reduction in Resource Usage G4-EN28 41 72 Materials That Are Reclaimed By Category and Easy Recycling
Statistics of Environmental Protection Expenses and Investments Compliance Disclosures on Management Approach (DMA) 35 72 for 2017 Monetary Value Of Significant Fines And Total Number Statistics of Environmental Protection Expenses and Investments G4-EN29 Of Non-Monetary Sanctions For Non-Compliance With 35 72 for 2017 Environmental Laws And Regulations Statistics of Environmental Protection Expenses and Investments Overall Disclosures on Management Approach (DMA) 35 72 for 2017 Total Environmental Protection Expenditures And Statistics of Environmental Protection Expenses and Investments G4-EN31 35 72 Investments By Type for 2017
GRI G4 Index P69 GRI G4 Index
Social- Labor Practices And Decent Work Category Create a LOHAS working enviornment to boost employees' Employment Disclosures on Management Approach (DMA) 48~54 72 feelings of cohesion and well-being Total Number And Rates Of New Employee Hires And G4-LA1 Overview of Employees around the World 48~51 72 Employee Turnover By Age Group, Gender And Region Benefits provided to full-time employees that are not G4-LA2 provided to temporary or part-time employees, by Remuneration and Benefits 52 72 significant locations of operation Return To Work And Retention Rates After Parental G4-LA3 Parental leave 54 72 Leave, By Gender Labor/management Establishment of Shortest Period of Notice for Change in Labor Disclosures on Management Approach (DMA) 57 72 relations Service Minimum Notice Periods Regarding Operational Establishment of Shortest Period of Notice for Change in Labor G4-LA4 Changes, Including Whether These Are Specified In 57 72 Service Collective Agreements Occupational health Safeguarding Employees and Labor Agreement, Healthcare, Disclosures on Management Approach (DMA) 57~62 72 and safety Occupational Hazard Prevention Percentage of total workforce represented in formal joint management–worker health and safety committees G4-LA5 EHS Management Systems 60 72 that help monitor and advise on occupational health and safety programs Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work Healthcare, Safety and Health Performance, Contractor Safety G4-LA6 57, 60, 62 72 related fatalities, by region and by gender (within the and Health Management organization and contractors working in SNI plants) Workers Without High Workers With High Incidence Or High Risk Of Diseases Incidence Or High Risk Of G4-LA7 Employee Communication and Care, Healthcare 57, 59 72 Related To Their Occupation Diseases Related To Their Occupation Health And Safety Topics Covered In Formal Safeguarding Employees and Labor Agreement, Occupational G4-LA8 57, 60 72 Agreements With Trade Unions Hazard Prevention Training and Disclosures on Management Approach (DMA) Education, Training and Attracting Talents 55~56 72 education Average Hours Of Training Per Year Per Employee By G4-LA9 Education and Training 55 72 Gender, And By Employee Category Programs For Skills Management And Lifelong Learning That Support The Continued Employability G4-LA10 Education, Training and Attracting Talents 55~56 72 Of Employees And Assist Them In Managing Career Endings Percentage of employees receiving regular performance G4-LA11 and career development reviews, by gender and by Education and Training 56 72 employee category
Diversity and Equal Create a LOHAS working enviornment to boost employees' Disclosures on Management Approach (DMA) 48~53 72 Opportunity feelings of cohesion and well-being
Composition Of Governance Bodies And Breakdown Of Employees Per Employee Category According To G4-LA12 Overview of Employees around the World 48~51 72 Gender, Age Group, Minority Group Membership, And Other Indicators Of Diversity Equal remuneration Disclosures on Management Approach (DMA) Remuneration and Benefits 52~53 72 for women and men Ratio Of Basic Salary And Remuneration Of Women To G4-LA13 Men By Employee Category, By Significant Locations Wage Guarantee 53 72 Of Operation
Labor practices Environmental Risk Evaluation and Communication, Supplier grievance Disclosures on Management Approach (DMA) CSR Promotion, Promotion of Electronic Industry Citizenship 34, 44, 46, 57 72 mechanisms Coalition (EICC), Channels of Communication
Number Of Grievances About Labor Practices Filed, Environmental Risk Evaluation and Communication, Supplier G4-LA16 Addressed, And Resolved Through Formal Grievance CSR Promotion, Promotion of Electronic Industry Citizenship 35, 44, 46, 57 72 Mechanisms Coalition (EICC), Channels of Communication
Social Category-Human rights category
Non- discrimination Disclosures on Management Approach (DMA) Code of Conduct, Human Rights Protection 20, 52 72 Total Number Of Incidents Of Discrimination And G4-HR3 Code of Conduct, Human Rights Protection 20, 52 72 Corrective Actions Taken Freedom of association Promotion of Electronic Industry Citizenship Coalition (EICC), Disclosures on Management Approach (DMA) 46, 57 72 and collective Safeguarding Employees and Labor Agreement bargaining Operations And Suppliers Identified In Which The Right To Exercise Freedom Of Association And Collective Promotion of Electronic Industry Citizenship Coalition (EICC), G4-HR4 46, 57 72 Bargaining May Be Violated Or At Significant Risk, And Safeguarding Employees and Labor Agreement Measures Taken To Support These Rights
Promotion of Electronic Industry Citizenship Coalition (EICC), Child labor Disclosures on Management Approach (DMA) 46, 52 72 Management of Underage Labor
Operations And Suppliers Identified As Having Significant Risk For Incidents Of Child Labor, And Promotion of Electronic Industry Citizenship Coalition (EICC), G4-HR5 46, 52 72 Measures Taken To Contribute To The Effective Management of Underage Labor Abolition Of Child Labor
Forced and Promotion of Electronic Industry Citizenship Coalition (EICC), Disclosures on Management Approach (DMA) 46, 52 72 compulsory labor Employment at Will and Humane Treatment
Senao Networks, Inc. Corporate Social Responsibility Report 2017 GRI G4 Index
Operations And Suppliers Identified As Having Significant Risk For Incidents Of Forced Or Compulsory Promotion of Electronic Industry Citizenship Coalition (EICC), G4-HR6 46, 52 72 Labor, And Measures To Contribute To The Elimination Employment at Will and Humane Treatment Of All Forms Of Forced Or Compulsory Labor Human rights issue Disclosures on Management Approach (DMA) Code of Conduct, Human Rights Protection 20, 52 72 grievance system Number Of Grievances About Human Rights Impacts G4-HR12 Filed, Addressed, And Resolved Through Formal Code of Conduct, Human Rights Protection 20, 52 72 Grievance Mechanisms Social- Society category Anti-corruption Disclosures on Management Approach (DMA) Code of Conduct 20 72 Total Number And Percentage Of Operations Assessed G4-SO3 For Risks Related To Corruption And The Significant Code of Conduct 20 72 Risks Identified Communication And Training On Anti-Corruption G4-SO4 Code of Conduct 20 72 Policies And Procedures G4-SO5 Confirmed Incidents Of Corruption And Actions Taken Code of Conduct 20 72 Anti-competitive Disclosures on Management Approach (DMA) Respecting Intellectual Property Rights and Fair Trade 28~29 72 Behavior Total Number Of Legal Actions For Anti-Competitive G4-SO7 Behavior, Anti-Trust, And Monopoly Practices And Their Respecting Intellectual Property Rights and Fair Trade 28~29 72 Outcomes Code of Conduct, Respecting Intellectual Property Rights and 20, Compliance Disclosures on Management Approach (DMA) 72 Fair Trade, Human Rights Protection 28~29, 52 Monetary Value Of Significant Fines And Total Number Code of Conduct, Respecting Intellectual Property Rights and G4-SO8 Of Non-Monetary Sanctions For Non-Compliance With 20, 28~29, 52 72 Fair Trade, Human Rights Protection Laws And Regulations Financial Information Disclosure and Investor Communication, Grievance Supplier CSR Promotion, Environmental Risk Evaluation and mechanisms for Disclosures on Management Approach (DMA) 20, 35, 44, 46 72 Communication, Promotion of Electronic Industry Citizenship impacts on society Coalition (EICC) Financial Information Disclosure and Investor Communication, Number Of Grievances About Impacts On Society Filed, Supplier CSR Promotion, Environmental Risk Evaluation and G4-SO11 Addressed, And Resolved Through Formal Grievance 20, 35, 44, 46 72 Communication, Promotion of Electronic Industry Citizenship Mechanisms Coalition (EICC) Social- Product responsibility category Customer Health Disclosures on Management Approach (DMA) Product and Service Violations 40 72 and Safety Percentage Of Significant Product And Service G4-PR1 Categories For Which Health And Safety Impacts Are Product and Service Violations 40 72 Assessed For Improvement Total Number Of Incidents Of Non-Compliance With Regulations And Voluntary Codes Concerning The G4-PR2 Product and Service Violations 40 72 Health And Safety Impacts Of Products And Services During Their Life Cycle, By Type Of Outcomes Product and service Pursuit for Customer Satisfaction – Customer Relation Disclosures on Management Approach (DMA) 38~40 72 labeling Management Type Of Product And Service Information Required By The Organization’S Procedures For Product And G4-PR3 Service Information And Labeling, And Percentage Of Product and Service Violations 40 72 Significant Product And Service Categories Subject To Such Information Requirements Total Number Of Incidents Of Non-Compliance With Regulations And Voluntary Codes Concerning Product G4-PR4 Product and Service Violations 40 72 And Service Information And Labeling, By Type Of Outcomes G4-PR5 Results Of Surveys Measuring Customer Satisfaction Customer Relations and Satisfaction 39 72 Marketing Disclosures on Management Approach (DMA) Respecting Intellectual Property Rights and Fair Trade 28~29 72 communications G4-PR6 Sale Of Banned Or Disputed Products Respecting Intellectual Property Rights and Fair Trade 28~29 72 Total Number Of Incidents Of Non-Compliance With Regulations And Voluntary Codes Concerning Marketing G4-PR7 Respecting Intellectual Property Rights and Fair Trade 28~29 72 Communications, Including Advertising, Promotion, And Sponsorship, By Type Of Outcomes Customer privacy Disclosures on Management Approach (DMA) Privacy and Information Security Protection 40 72 Total Number Of Substantiated Complaints Regarding G4-PR8 Breaches Of Customer Privacy And Losses Of Privacy and Information Security Protection 40 72 Customer Data Respecting Intellectual Property Rights and Fair Trade, Product Compliance Disclosures on Management Approach (DMA) and Service Violations, Privacy and Information Security 28~29, 40 72 Protection Monetary Value of Significant Fines for Non-Compliance Respecting Intellectual Property Rights and Fair Trade, Product G4-PR9 with Laws and Regulations Concerning the Provision and Service Violations, Privacy and Information Security 28~29, 40 72 and Use of Products and Services Protection
GRI G4 Index P71 External Assurance Statement
ASSURANCE STATEMENT
SGS TAIWAN LTD.’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE SENAO NETWORKS INCORPORATION’S CORPORATE SOCIAL RESPONSIBILITY REPORT FOR 2017
NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION SGS Taiwan Ltd. (hereinafter referred to as SGS) was commissioned by SENAO NETWORKS INCORPORATION (hereinafter referred to as SNI to conduct an independent assurance of the Corporate Social Responsibility Report for 2017 (hereinafter referred to as CSR Report). The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the text, and data in accompanying tables, contained in this report.
The information in the SNI’s CSR Report of 2017 and its presentation are the responsibility of the management of SNI. SGS has not been involved in the preparation of any of the material included in SNI’s CSR Report of 2017.
Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification with the intention to inform all SNI’s stakeholders.
The SGS protocols are based upon internationally recognized guidance, including the Principles contained within the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2013) for accuracy and reliability and the guidance on levels of assurance contained within the AA1000 series of standards and guidance for Assurance Providers.
This report has been assured using our protocols for: • evaluation of content veracity at a moderate level of scrutiny for SNI and moderate level of scrutiny for applicable aspect boundaries outside of the organization covered by this report; • AA1000 Assurance Standard (2008) Type 1 evaluation of the report content and supporting management systems against the AA1000 Accountability Principles (2008); and • evaluation of the report against the Global Reporting Initiative Sustainability Reporting Guidelines (G4 2013).
The assurance comprised a combination of pre-assurance research, interviews with relevant employees, superintendents, CSR committee members and the senior management in Taiwan; documentation and record review and validation with external bodies and/or stakeholders where relevant. Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process.
STATEMENT OF INDEPENDENCE AND COMPETENCE The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS affirm our independence from SNI, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors registered with ISO 26000, ISO 20121, ISO 50001, SA8000, EICC, QMS, EMS, SMS, GPMS, CFP, WFP, GHG Verification and GHG Validation Lead Auditors and experience on the SRA Assurance service provisions.
GP5008 Issue 5
Senao Networks, Inc. Corporate Social Responsibility Report 2017 External Assurance Statement
VERIFICATION/ ASSURANCE OPINION On the basis of the methodology described and the verification work performed, we are satisfied that the information and data contained within SNI’s CSR Report of 2017 verified is accurate, reliable and provides a fair and balanced representation of SNI sustainability activities in 01/01/2017 to 12/31/2017.
The assurance team is of the opinion that the Report can be used by the Reporting Organisation’s Stakeholders. We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting. In our opinion, the contents of the report meet the requirements of GRI G4 Core Option and AA1000 Assurance Standard (2008) Type 1, Moderate level assurance.
AA1000 ACCOUNTABILITY PRINCIPLES (2008) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
Inclusivity SNI has demonstrated a good commitment to stakeholder inclusivity and stakeholder engagement. A variety of engagement efforts such as survey and communication to investors, customers, suppliers, employees, government, and other stakeholders are implemented to underpin the organization's understanding of stakeholder concerns. For future reporting, SNI may proactively consider having more direct two-ways involvement of stakeholders during future engagement. Materiality SNI has established effective processes for determining issues that are material to the business. Formal review has identified stakeholders and those issues that are material to each group and the report addresses these at an appropriate level to reflect their importance and priority to these stakeholders. Emphasizing sustainable information on performance regarding the most material aspects is suggested. Responsiveness The report includes coverage given to stakeholder engagement and channels for stakeholder feedback.
GLOBAL REPORTING INITIATIVE REPORTING GUIDELINES (G4 2013) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
Principles The report, SNI’s CSR Report of 2017, is adequately in line with the GRI G4 Core Option. The material aspects and their boundaries within and outside of the organization are properly defined in accordance with GRI’s Reporting Principles for Defining Report Content. Disclosures of identified material aspects and boundaries, and stakeholder engagement, G4-17 to G4-27, are correctly located in content index and report. General Standard Disclosures More detailed governance related to GSDs may be further enhanced in future reports. Specific Standard Disclosures Disclosures on Management Approach components for other material aspects, such as goals and targets, may be further enhanced in next report. Moreover, when disclosing on key performance information of Emission indicators (EN15, 16 & 18), SNI may consider aligning with the sustainability reporting schedule in order to ensure the information is available in time for stakeholders.
Signed: For and on behalf of SGS Taiwan Ltd.
David Huang, Director Taipei, Taiwan 20 June, 2018 WWW.SGS.COM
GP5008 Issue 5
External Assurance Statement P73 Senao Networks Inc. Corporate Social Responsibility Report 2017 Senao Networks Inc. Corporate Social Responsibility Report 2017
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